Kafala System in Saudi Arabia: Rules, Reforms & Challenges
Introduction
The kafala system in Saudi Arabia has long governed the relationship between migrant workers and their employers, reflecting a broader trend across the Gulf Cooperation Council (GCC) countries. Originally established to meet the demands of rapid economic expansion, the system aimed to provide a steady supply of affordable labor. Proponents argue that it has been instrumental in driving development and supporting local businesses.
However, over time, the kafala system has faced increasing criticism for its potential to facilitate exploitation. The lack of worker protections under this system has led to issues such as underpayment, harsh working conditions, and even abuse. The system has also been linked to widespread racial discrimination and gender-based violence. Recent global movements against racism, the COVID-19 pandemic, and preparations for international events like the 2022 FIFA World Cup have shone a spotlight on these systemic issues, raising questions about the future of labor reforms in the region.
What is the Kafala System?
The kafala system—or sponsorship system—is a legal framework that ties migrant workers’ residency status to their employers, who act as their sponsors, or “kafeel.” This system has been predominantly used in countries such as Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, Bahrain, Jordan, and Lebanon. The system grants significant control to the employer, including the ability to cancel a worker’s residency permit, effectively limiting the worker’s freedom of movement and ability to change jobs.
Although countries like Bahrain and Qatar have claimed to have abolished the system, many argue that the reforms have been insufficiently enforced, and that true abolition has not yet been achieved. In Saudi Arabia, however, the landscape is changing.
Under the kafala system in Saudi Arabia, the state authorizes local individuals or companies to act as sponsors for foreign workers. These sponsors, known as “kafeel,” are responsible for covering travel expenses and providing accommodation, which can range from dormitory-style housing to living within the sponsor’s home for domestic workers. Instead of directly hiring workers, sponsors often collaborate with private recruitment agencies in the workers’ home countries to streamline the hiring process and facilitate their entry into Saudi Arabia.
Unlike labor ministries, the kafala system typically falls under the jurisdiction of interior ministries, which means that workers are often excluded from the host country’s labor protections. This lack of legal safeguards leaves workers vulnerable to various forms of exploitation, including the inability to engage in labor disputes or unionize. Because employment and residency visas are intertwined, and only sponsors have the authority to renew or terminate them, sponsors effectively control the legal status of workers. This dynamic creates a significant power imbalance, enabling some sponsors to exploit the system.
In many cases, workers require their sponsor’s consent to change jobs, end their employment, or even leave or re-enter Saudi Arabia. Leaving the workplace without permission can result in the immediate termination of the worker’s legal status, with severe consequences such as imprisonment or deportation, even in cases where the worker is fleeing abuse. The new kafala rules in Saudi Arabia have sought to address some of these issues, but challenges remain.
The naqal kafala in Saudi Arabia—the process of transferring sponsorship—has historically been complex and fraught with difficulty, with workers often having little recourse in the face of exploitation. Although there have been kafala changes in Saudi Arabia, including reforms that make it easier to transfer sponsorship, many experts argue that the system still facilitates conditions akin to modern slavery.
As reforms continue, such as the abolishment of the kafala system in Saudi Arabia, questions arise about how these changes will impact the power dynamics between sponsors and workers. For those navigating this system, understanding how much kafala SAR in Saudi Arabia costs and how to know if a kafala request has been sent is crucial for ensuring their rights and legal standing are maintained.
Origins of the Kafala System in Saudi Arabia
The kafala system in Saudi Arabia has its roots in Islamic jurisprudence, particularly in the areas of legal guardianship and oversight. Historically, this system was developed to manage the treatment of foreign workers in the Gulf region, initially focusing on the pearl industry and various commercial trades during the early twentieth century.
As Gulf states, including Saudi Arabia, began to experience economic growth driven by oil revenues, the demand for foreign labor surged. This period saw a significant expansion of the kafala system in the 1950s, as these nations required a larger workforce for ambitious infrastructure projects. With relatively small local populations, the Gulf states relied on temporary workers who could be employed during economic booms and return to their home countries during downturns.
Development and Impact of the Kafala System
The kafala system was designed to protect local businesses and manage the influx of expatriate workers. It was also intended to offer some level of protection to these workers by ensuring their well-being and safety. However, as Houtan Homayounpour, former head of the Qatar office of the International Labor Organization (ILO), notes, the system evolved into a mechanism that sometimes created power imbalances, leading to exploitation.
Initially, the system favored Arab workers from neighboring countries like Egypt. However, the 1970s oil boom shifted preferences towards non-Arab labor, particularly from South Asia. This change was driven by the need for more affordable labor and concerns that Arab expatriates might spread ideologies that could threaten the stability of Gulf monarchies. The situation worsened after the first Gulf War, which saw the expulsion of around two million Arab workers, including Egyptians, Palestinians, and Yemenis, due to political tensions.
Recent Changes and the Future of the Kafala System
Over the past fifty years, the kafala system has significantly impacted the demographic landscape of the Gulf region. The population of these states, including Saudi Arabia, has increased dramatically, with foreigners now outnumbering locals in all GCC countries except Saudi Arabia.
Recent economic challenges, such as the 2014 oil price crash and the COVID-19 pandemic, have led to changes in the kafala system. Saudi Arabia has implemented new kafala rules to address these issues, including reforms to protect workers and manage labor market dynamics. The shift towards prioritizing local employment and efforts to integrate Saudi nationals into the private sector reflect these changes. New policies have been introduced to encourage foreign workers to return home, including covering travel costs and waiving exit fines.
For those navigating the kafala system, understanding recent updates, such as the abolishment of outdated kafala rules and the new kafala regulations in Saudi Arabia, is crucial. This includes knowing how to check if a kafala request has been sent and understanding how much kafala SAR costs. These changes signify a move towards a more balanced approach to labor management in Saudi Arabia.
Who Are the Workers Under the Kafala System?
The kafala system in Saudi Arabia affects nearly all foreign workers in the country, regardless of their nationality, economic status, or profession. Most of these workers come from Africa and South Asia and often take on jobs that local residents find less desirable, such as roles in construction, domestic work, and service industries.
In Saudi Arabia, as in many Gulf countries, these workers typically earn less than local employees. For instance, foreign workers might earn lower wages compared to Saudi nationals. White-collar workers and those from Western countries generally receive better conditions and treatment. According to the UN Department of Economic and Social Affairs, there were about 36 million international migrants in GCC countries, Jordan, and Lebanon in 2020, representing almost half of the combined population of these nations.
Risks Faced by Workers Under the Kafala System
The kafala system in Saudi Arabia, often criticized for creating a power imbalance between sponsors and workers, has led to various issues. Here are some of the key risks faced by workers:
Restricted Movement and Communication
Workers may face restricted movement as employers sometimes confiscate their passports, visas, and phones. Domestic workers are often confined to their employers’ homes, while non-domestic workers might live in overcrowded accommodations. This situation increases their risk of health issues, such as those related to COVID-19, and limits their access to adequate healthcare.
Debt Bondage
Workers often incur significant debts due to recruitment fees. Although Saudi Arabian laws require employers to cover these fees, they are frequently passed on to the workers. Many workers take loans to pay these fees or become indebted to recruiters. Some employers may reduce or withhold wages under the pretext of repaying these fees, sometimes using this as a form of punishment.
Forced Labor
Deception or coercion by recruiters can lead to forced labor. A common issue is “contract substitution,” where workers sign multiple contracts in languages they do not understand, resulting in unfavorable working conditions and lower wages.
Visa Trading
In some cases, sponsors illegally sell workers’ visas to other employers while remaining the official sponsor. This can result in changes to the terms of employment, including lower wages or different job requirements.
Irregular Residency Status
Workers depend on their sponsors to maintain legal residency status in Saudi Arabia. If a sponsor decides to invalidate a worker’s status, the worker can lose their legal right to stay in the country.
Recent Changes and Developments
Recent updates to the kafala system in Saudi Arabia aim to address some of these issues. The new kafala rules are designed to improve worker conditions and offer better protection. Understanding how to check if a kafala request has been sent, and knowing how much kafala SAR costs, are part of navigating these changes. The reforms also include efforts to encourage workers to return home and manage their residency status more fairly.
How Race and Gender Affect Workers Under the Kafala System
Impact of Race
Under the kafala system in Saudi Arabia, racial and ethnic disparities significantly affect workers’ experiences. Darker-skinned workers from Africa and South Asia often face worse treatment compared to others. A 2020 UN report highlighted that workers’ salaries and job roles frequently depended on their countries of origin. Even highly qualified workers might be assigned to lower-paying jobs based on racial or ethnic stereotypes.
Gender Discrimination
Gender-based discrimination is a major issue within the kafala system. Domestic workers, who are predominantly women, are particularly vulnerable to abuse, including sexual violence. Many female workers fear reporting abuse due to potential backlash from sponsors or legal consequences. In some cases, such as in Kuwait and Qatar, women have been imprisoned for extramarital sex, including cases of rape. This gender-based mistreatment is especially concerning in countries like Lebanon, where women make up a significant portion of kafala workers.
Who Benefits from the Kafala System?
Despite the risks of exploitation, many workers accept jobs under the kafala system because they offer higher wages than what they might earn at home. Workers often send remittances back to their families, which can help reduce poverty in their home countries. In 2019, Saudi Arabia, Kuwait, and the UAE were among the top remittance-sending countries globally. Proponents argue that facilitating legal entry helps prevent human smuggling. However, critics say that current protections for workers still need improvement.
Recent Changes and Their Effects
Recent updates to the kafala system in Saudi Arabia, including the new kafala rules, aim to address some of these issues. Understanding these changes is important, such as how to check if a kafala request has been sent and how much kafala SAR costs. The kafala system in Saudi Arabia has also seen discussions about reforms, including potential changes to address racial and gender disparities and improve overall conditions for workers.
Additionally, reforms like Article 77 of the Saudi Labor Law are part of the broader efforts to improve labor conditions and enhance recruitment strategies to attract and retain talent.
The evolution of the Saudi Arabia iqama system reflects ongoing adjustments aimed at balancing worker rights and regulatory needs.
Criticisms of the Kafala System
Some experts argue that the kafala system in Saudi Arabia is inefficient and hinders economic development. Zahid Hussein, a World Bank economist, pointed out in 2014 that short contracts, fixed wages, and limited internal mobility reduce migrant workers’ motivation to improve their skills and productivity. Hussein suggested that host countries should consider moving away from the kafala system, focusing instead on diversifying their economies and fostering high-skill industries.
Global Comparison
While issues like passport withholding and exploitation are common in many guest-worker programs around the world, the kafala system is often seen as more extreme. According to experts like Ryszard Cholewinski, the kafala system gives employers an unusually high degree of control over workers, preventing them from integrating into local societies. This level of control and exclusion is not typically found in other labor programs.
Global Response and Reactions
Labor rights advocates have long pushed for reforms or abolition of the kafala system, and these calls gained momentum during the global anti-racism protests in 2020. The 2022 FIFA World Cup in Qatar also highlighted abuses, as migrant workers faced harsh conditions while building infrastructure for the event. Reports indicated that many workers suffered or even died due to extreme heat and poor working conditions. In response to the criticism, Qatar implemented new heat protection measures and pledged to reform the kafala system.
Countries that send workers to GCC states, like Indonesia, Kenya, and Nepal, have sometimes banned their citizens from working in these regions due to mistreatment. However, these bans can unintentionally drive workers toward illegal smuggling routes, exacerbating the problem. Additionally, such bans often impact women more severely, particularly in countries like the Philippines, where many migrant workers are female domestic helpers.
Multinational organizations, including the European Union and the United Nations, have criticized the kafala system but have yet to enforce significant changes. The UN special rapporteur on the human rights of migrants called for Qatar to dismantle the system and implement a more open labor market. The proposed changes would allow workers to switch employers and leave the country more freely.
Recent Developments
In Saudi Arabia, ongoing reforms, including the new kafala rules, are part of efforts to improve conditions for workers. Understanding how to navigate these changes, such as how to check if a kafala request has been sent or how much kafala SAR costs, is crucial. The kafala system in Saudi Arabia is evolving, and staying informed about these changes is essential for both workers and employers.
The kafala system in Saudi Arabia has long been a crucial but controversial part of the labor landscape. Although recent reforms have made some improvements, challenges remain. Understanding these changes, including how to manage sponsorships and residency issues, is important for both workers and employers. As Saudi Arabia continues to evolve its labor practices, staying informed will help ensure fairer conditions and smoother operations for everyone involved.
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Final Thoughts
The kafala system in Saudi Arabia has long been a crucial but controversial part of the labor landscape. Although recent reforms have made some improvements, challenges remain. Understanding these changes, including how to manage sponsorships and residency issues, is important for both workers and employers. As Saudi Arabia continues to evolve its labor practices, staying informed will help ensure fairer conditions and smoother operations for everyone involved.

Dr. Syed Ammad Zafar is an Assistant Professor at UIT University and an HEC-recognized PhD supervisor. He also works as an HR Generalist specializing in international recruitment for Greenland Overseas, Pakistan. Dr. Zafar’s expertise spans academia and industry, where he excels in mentoring candidates and facilitating global talent acquisition. His dedication to education and professional development underscores his commitment to fostering excellence in both fields.