Kafala system
The Kafala system, deriving from the Arabic term for sponsorship, is a legal framework regulating the employment of non-citizen migrant workers in several Arab states, particularly the Gulf Cooperation Council (GCC) countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—as well as Jordan and Lebanon.[1][2] Under this arrangement, an employer or sponsor (kafeel) assumes legal responsibility for the worker's immigration status, visa, and residency permit, effectively tying the worker's right to live and work in the host country to that specific sponsor.[1][3] This structure originated in the 1960s and 1970s amid rapid oil-driven economic expansion in the Gulf, enabling states with small native populations to import temporary labor forces comprising up to 90% of their workforces without conferring citizenship or long-term settlement rights.[2][4] The system's core mechanisms include requirements for employer approval to change jobs, transfer sponsorship, or exit the country—though some nations have introduced conditional waivers—and frequent practices such as passport retention by sponsors, which amplify employer leverage despite formal prohibitions in many jurisdictions.[1][5] It has underpinned transformative infrastructure projects, from skyscrapers in Dubai to stadiums for Qatar's 2022 FIFA World Cup, by providing scalable, low-wage labor drawn primarily from South Asia and Africa, where domestic opportunities often yield lower earnings.[1][4] However, the dependency it enforces has facilitated widespread employer abuses, including wage withholding, excessive working hours exceeding legal limits, substandard housing, and physical coercion, with empirical reports documenting elevated risks of debt bondage from recruitment fees and preventable fatalities in high-heat construction environments.[1][2][5] Recent reforms reflect partial acknowledgments of these dynamics, such as Qatar's 2020 abolition of the exit visa requirement and no-objection certificates for job mobility (subject to contract terms or ministry approval), alongside a minimum wage floor, though implementation gaps persist and core sponsorship ties remain intact.[6][7] Similar adjustments in Saudi Arabia and the UAE have eased some mobility restrictions but retained employer primacy, prompting debates over whether incremental changes address root power asymmetries or merely rebrand the framework amid international scrutiny tied to events like global sporting spectacles.[8][9] Critics, including labor organizations, contend the system structurally incentivizes exploitation by prioritizing host-country demographic control and economic efficiency over worker agency, while defenders highlight its role in voluntary economic migration and sustained growth in labor-importing states.[5][4]Definition and Historical Origins
Etymology and Core Concept
The term kafala originates from the Arabic word kafālah (كفالة), denoting sponsorship, guarantee, or surety, with roots in classical Islamic jurisprudence where it signified legal obligations for guardianship, such as assuming responsibility for dependents or vouching for another's conduct.[1] In traditional Islamic texts, including prophetic traditions (Sunnah), kafala extended to acts of welfare provision, like sponsoring orphans or guaranteeing contractual fulfillment, reflecting a relational framework of mutual accountability rather than unilateral control. This etymological foundation contrasts with the system's modern application, which diverges from its historical emphasis on protective reciprocity toward employer-centric regulation.[3] At its core, the kafala system constitutes a sponsorship regime that legally binds migrant workers' immigration status, residency permits, and employment to a designated local sponsor—typically the employer or kafeel—throughout the duration of their contract in host countries.[1] Under this framework, the sponsor assumes primary legal responsibility for the worker, including visa sponsorship, financial liabilities for repatriation or abscondment, and oversight of compliance with labor laws, while workers face prohibitions on changing employers, residing without permission, or exiting the country without sponsor approval.[3] This structure, formalized in Gulf Cooperation Council states and select other Arab nations since the mid-20th century, prioritizes state control over labor inflows via private actors, ostensibly to regulate foreign workforce integration amid rapid economic demands but often resulting in asymmetric power dynamics favoring sponsors.[1][9]Emergence During Oil Boom
The kafala system traces its modern origins to early 20th-century practices in the Gulf region, where sponsorship arrangements, informed by Islamic jurisprudence on guardianship, regulated foreign participants in the declining pearl diving industry and commercial trades.[1] These initial mechanisms ensured that non-citizen laborers remained transient and accountable to local guarantors, preventing unauthorized residency amid limited state administrative capacity. However, the system's emergence as a cornerstone of labor management crystallized during the 1930s–1950s oil boom, as discoveries—Bahrain in 1932, Kuwait and Saudi Arabia in 1938, Qatar in 1940—spurred commercial extraction and necessitated massive infrastructure development, including wells, refineries, and pipelines, far exceeding the capacity of small native populations.[1][10] With oil revenues transforming arid sheikhdoms into export powerhouses, Gulf states like Saudi Arabia, Kuwait, and emerging entities such as the UAE (oil found in Abu Dhabi, 1958) imported temporary workers primarily from Egypt, Palestine, and Yemen to fill unskilled roles, binding them legally to sponsors who controlled visas, mobility, and repatriation.[1] This adaptation of kafala addressed acute shortages while safeguarding tribal demographics and resource rents, as sponsors—often employers or government entities—assumed liability for workers' conduct and debts, formalizing a framework under interior ministries rather than comprehensive labor codes.[10] By the 1950s, as projects scaled to urban expansions and export facilities, the system expanded systematically to prioritize economic utility over worker autonomy, enabling Gulf economies to grow without domestic upheaval.[1] The 1973 oil price surge further entrenched kafala's dominance, quadrupling revenues and accelerating construction booms that drew millions more migrants, shifting sourcing toward cost-effective South Asian labor to mitigate political risks from Arab nationalists.[1] In this era, formalizations tied worker legality explicitly to sponsor approval for job changes or exit, institutionalizing controls that persisted despite varying national implementations, as states balanced rapid modernization with preservation of monarchical authority and citizen privileges.[10] This oil-driven evolution rendered kafala indispensable for sustaining expatriate-dependent growth, where foreigners comprised up to 90% of workforces in some states by the late 20th century.[1]Legal and Cultural Foundations
The term kafala, denoting sponsorship or guarantee, originates in Islamic jurisprudence as a mechanism of legal surety or guardianship, such as assuming responsibility for debts, orphans, or dependents under classical fiqh principles like those in the Hanbali school prevalent in the Gulf.[1] This evolved from tribal customs in the Arabian Peninsula, where Bedouin leaders extended protection (kafala) to outsiders—traders, pilgrims, or fugitives—in exchange for loyalty or service, a practice traceable to pre-Islamic and early Islamic eras but formalized in the 1930s amid nascent state formation in Saudi Arabia.[11] [12] However, the system's modern labor bindings diverge from these roots, as Sharia emphasizes fair wages, timely payment, and humane treatment of workers (e.g., Quran 17:35 on fulfilling contracts) without mandating exclusive employer ties, rendering the kafala's restrictiveness a policy innovation tied to 20th-century economic imperatives rather than religious doctrine.[13] Legally, kafala is codified in GCC countries' immigration and residence statutes, which condition migrant workers' entry, employment, and stay on a local sponsor's (kafeel) endorsement, typically the employer. In Qatar, Law No. 14 of 2004 (Labor Law) and Law No. 4 of 2009 (Entry and Residence of Expatriates) require sponsors to secure work visas (iqama-equivalent) and assume liability for workers' legal conduct, exit permissions, and repatriation, with violations punishable by fines up to 10,000 QAR.[14] [15] Saudi Arabia's framework, pre-2025 abolition, rested on the 1952 Residence Regulations and Labor Law Royal Decree M/51 (updated 2005), mandating sponsors cover travel costs, prohibit passport retention (per 2001 Council of Ministers Decision), and report worker absences, enforcing ties through deportation threats for absconding.[15] Comparable structures appear in Kuwait's 1959 Aliens' Residence Law (Decree 17/1959), UAE's Federal Law No. 6/1973 on Immigration, Bahrain's Law No. 19/2006, and Oman's 1996 Foreigners' Residence Law, all vesting sponsors with quasi-guardian powers to regulate workforce inflows amid oil-driven growth from the 1950s onward.[15] These laws emerged post-World War II as Gulf monarchies, lacking indigenous skilled labor, imported millions from South Asia and elsewhere to fuel infrastructure booms—e.g., Saudi Arabia's workforce swelled from under 100,000 expatriates in 1960 to over 8 million by 2010—prioritizing state sovereignty over international norms like ILO conventions on free mobility.[1] Sponsors' duties include welfare guarantees and penalties for worker flight (e.g., Kuwait's Decree 166/2007 bans unauthorized transfers), but reciprocity is asymmetrical, with workers barred from job changes without consent, reflecting causal priorities of demographic control in rentier economies where nationals comprise minorities (e.g., Qatar's citizens at 12% of 2.8 million population in 2010s).[15] While culturally framed as paternalistic obligation, empirical outcomes hinge on enforcement, often lax due to employer lobbying and judicial deference to property rights over labor freedoms.[16]Operational Mechanics
Sponsorship Binding and Controls
The kafala system establishes a direct legal linkage between a migrant worker's immigration status and their sponsor, typically the employer designated as the kafeel, who assumes responsibility for the worker's residency permit and work authorization. This binding delegates state oversight of migrant labor to private employers, requiring workers to maintain the sponsorship relationship to avoid becoming undocumented and subject to deportation.[2] In practice, workers cannot enter, reside, or work without an active sponsorship contract, which ties their visa validity to the sponsor's compliance with recruitment and employment obligations.[1] Key controls include prohibitions on job mobility without sponsor approval, often necessitating a no-objection certificate for transfers, which employers may withhold to retain labor or recoup recruitment costs.[5] Unauthorized departure from the sponsor—termed "absconding"—renders workers illegal residents, punishable by fines, detention, or blacklisting from re-entry, as stipulated in labor laws across kafala states.[17] Exit visas or permits, mandatory for leaving the country, further centralize authority with the sponsor, who must endorse the request, limiting workers' ability to escape exploitative conditions independently.[18] Employers frequently retain workers' passports upon arrival, despite formal prohibitions in jurisdictions like Saudi Arabia and Qatar, enabling de facto control over movement and contract enforcement.[19] [20] This practice persists due to weak enforcement and the system's design, which prioritizes sponsor accountability for worker compliance over individual rights, resulting in reported vulnerabilities to coercion.[21] Reforms in some countries, such as Qatar's 2020 abolition of the exit permit requirement for most workers, have partially decoupled these controls, though domestic workers often remain bound by sponsor consent.[6]Employer Responsibilities and Worker Restrictions
Under the Kafala system prevalent in several Gulf Cooperation Council (GCC) countries, employers serve as sponsors (kafils) and assume primary legal responsibility for migrant workers' immigration status, including visa issuance, renewal, and termination.[1][22] This delegation of state authority to private employers requires them to report any changes in workers' domicile, civil status, or contract details to immigration authorities, ensuring ongoing compliance with residency laws.[22] Employers are legally obligated to provide accommodation, typically in shared dormitories or the sponsor's residence, cover initial recruitment and travel expenses to the host country, and arrange medical care or insurance, though enforcement varies and provisions are often inadequate.[1] Upon contract expiry or termination, sponsors must facilitate repatriation, including payment of return travel costs, while assuming economic liability for any worker-related debts or violations during the employment period.[1][22] In tandem, migrant workers face binding restrictions that tie their legal presence and employment to the specific sponsor, prohibiting job transfers without explicit permission, often in the form of a no-objection certificate (NOC) from the employer.[1][3] Exit from the country requires sponsor approval via an exit permit, and employers commonly retain workers' passports, severely limiting personal mobility and access to alternative employment or escape from abuse.[1][3][22] Unauthorized departure, termed "absconding," renders workers illegal residents, exposing them to arrest, fines, imprisonment, or deportation without recourse, while employers face minimal penalties for filing such reports, even if unfounded.[3][1] These controls, embedded in laws like Kuwait's 1959 Residency Law, foster dependency, with over half of interviewed survivors in Lebanon and Kuwait reporting restricted movement, such as confinement or surveillance.[22][3] While reforms in countries like Qatar (e.g., 2021 abolition of routine job-change consent) and Saudi Arabia (full system abolition in October 2025) have eased some restrictions, core employer controls persist in implementations in UAE, Oman, and others.[1]Enforcement Mechanisms and Penalties
The kafala system delegates enforcement responsibilities to private sponsors (kafeel), who hold legal authority over migrant workers' residency permits, such as the iqama in Saudi Arabia, requiring workers to obtain sponsor approval for job changes, visa renewals, or exit visas.[1] Immigration authorities in Gulf Cooperation Council (GCC) countries, including ministries of interior and labor, monitor compliance through border controls, workplace raids, and digital tracking systems linked to sponsorship records, though routine inspections remain infrequent due to reliance on employer self-reporting.[2] Violations trigger administrative processes where sponsors can report workers for "absconding"—leaving employment without permission—leading to immediate legal status irregularity and potential arrest upon detection.[23] Penalties for workers primarily target absconding and unauthorized residency, treating them as administrative or criminal offenses. In Qatar, absconding incurs fines up to 10,000 Qatari riyals (approximately $2,750 USD), imprisonment for up to three years, and deportation, with workers often detained in deportation centers during proceedings.[24] Saudi Arabia applies similar measures, including fines of 2,000-5,000 Saudi riyals ($533-$1,333 USD) and up to six months' imprisonment for initial absconding reports, though domestic workers receive a two-month grace period before penalties escalate to deportation and re-entry bans.[25] In the United Arab Emirates, penalties include fines up to 50,000 UAE dirhams ($13,600 USD), detention, and summary deportation, often without judicial review, exacerbating vulnerability to employer retaliation.[26] Employer violations, such as passport confiscation, wage non-payment, or unauthorized worker transfers, carry fines and recruitment restrictions, but enforcement is inconsistent, with low prosecution rates favoring sponsors. In Saudi Arabia, employers face fines up to 20,000 Saudi riyals ($5,330 USD) and a three-year ban on hiring domestic workers for charging illegal recruitment fees, while smaller firms see reduced penalties for labor law breaches like overwork or document retention.[27][28] Qatar imposes fines of 5,000-25,000 Qatari riyals ($1,375-$6,875 USD) for failing to provide mandated accommodations or allowances, yet reports indicate rare application, perpetuating impunity amid weak labor inspections.[24] Across GCC states, penalties emphasize deterrence through financial sanctions and operational bans, but systemic delegation to sponsors undermines uniform application, as authorities prioritize immigration control over labor rights adjudication.[2]Country-Specific Implementations
Bahrain
In Bahrain, the kafala system legally binds migrant workers to a kafeel (sponsor), typically their employer, who holds authority over the worker's immigration status, including visa issuance, renewal, and exit permissions.[1] This sponsorship framework, formalized through the Labour Market Regulatory Authority (LMRA) established in 2006, requires employers to assume responsibility for workers' conduct and repatriation, while workers face restrictions on job mobility without sponsor approval.[29] Migrant laborers, predominantly from South Asia and Southeast Asia, constitute the majority of Bahrain's private-sector workforce, filling roles in construction, services, and domestic work under these controls.[1] Key reforms emerged in 2009 via amendments to the Labour Market Regulatory Law, enabling non-domestic migrant workers to transfer to a new sponsor after a three-month notice period without requiring a no-objection certificate (NOC) from the current employer, aiming to reduce exploitation tied to sponsorship dependency.[29] [30] However, domestic workers—numbering over 100,000, mostly women from Asia and Africa—were exempted, remaining subject to full sponsor discretion for job changes, exits, and contract terms often lacking minimum wage or overtime protections.[29] In 2017, Bahrain piloted "Flexi-Perm" visas to further liberalize mobility by allowing independent job-seeking without fixed sponsorship, but the program was suspended in 2018 amid concerns over enforcement and labor market stability.[1] Enforcement relies on LMRA inspections and penalties for violations like unauthorized transfers, including fines up to 1,000 Bahraini dinars (approximately $2,650 USD) per infraction, though compliance remains inconsistent due to limited oversight of private households and construction sites.[29] Persistent abuses include passport confiscation by 70% of surveyed workers in one 2012 study, wage arrears averaging months-long delays, and substandard housing violating occupancy limits, often addressed as civil labor disputes rather than criminal forced labor offenses.[29] [31] U.S. Department of State reports from 2022 and 2025 note that authorities prosecuted few trafficking cases, instead fining employers for administrative breaches, while Human Rights Watch documentation highlights systemic barriers to remedies, such as fear of deportation for complaints.[31] [32] These patterns indicate that while partial deregulations have eased some exit visa requirements since 2009, core sponsorship controls perpetuate vulnerability, particularly for low-skilled migrants excluded from reform benefits.[30]Israel
Israel employs a binding arrangement for non-Palestinian foreign workers, under which migrant laborers' legal residency and work permits are tied to specific employers, creating dependencies similar to those in sponsorship systems elsewhere. This policy, administered by the Population and Immigration Authority since the 1990s, regulates the entry of temporary workers primarily from countries like India, China, the Philippines, and Nepal for sectors including construction, agriculture, and elderly caregiving. As of April 2025, approximately 195,000 legal foreign workers were employed in Israel, with employers required to sponsor visas and cover certain costs, though workers often incur substantial recruitment fees—sometimes exceeding $10,000—leading to debt bondage that discourages job changes. Leaving an employer without Interior Ministry approval risks deportation, fostering conditions where abuse, wage theft, and restricted mobility persist despite legal safeguards.[33][34][35] The Israeli Supreme Court has periodically challenged aspects of this binding regime; for instance, rulings have invalidated indefinite ties for caregivers and, in recent years, banned binding visas for seasonal agricultural workers, mandating greater flexibility for employer changes within work periods. However, implementation remains inconsistent, with reports indicating continued exploitation through informal pressures and regulatory loopholes as of late 2024. Human rights organizations, including Kav LaOved, argue that the system violates workers' rights by prioritizing employer control over labor mobility, though Israeli authorities maintain it prevents overstays and ensures workforce rotation. Since October 2023, amid security concerns, Israel has increased foreign worker inflows—over 85,000 arrivals by August 2025—to offset shortages, extending reliance on tied visas.[36][37] For Palestinian laborers from the West Bank and Gaza, a distinct permit regime operates, requiring employers to request quotas from Israeli authorities, with workers' access tied to approved jobs and subject to security vetting. Prior to October 2023, around 190,000 Palestinians held such permits, contributing significantly to Israel's economy in construction and services, but many paid illicit fees to Palestinian brokers—up to 2,500 Israeli shekels ($670) monthly—for permit acquisition, equivalent to half their wages and enabling a parallel economy of extortion. This system, rooted in occupation-era controls rather than formal sponsorship, has been likened by critics to bonded labor arrangements, as workers risk permit revocation for complaints or absences. Post-October 2023 restrictions halted most Palestinian entries, redirecting labor needs to foreign migrants, though sporadic permit issuances resumed under quotas by 2025.[37][38][39]Kuwait
The kafala system in Kuwait, formally known as the sponsorship system, legally ties migrant workers' immigration status, employment, and mobility to their Kuwaiti sponsor (kafeel), who must approve job changes, contract terminations, or departures from the country.[1] This framework governs the majority of Kuwait's expatriate labor force, which comprises roughly two-thirds of the nation's 4.6 million residents, exceeding 3 million individuals primarily from India, Egypt, Bangladesh, and the Philippines.[40] [41] Expatriates account for up to 82% of the workforce, including 25.2% in domestic service as of the first quarter of 2025, with the total workforce reaching 2.212 million excluding domestics.[42] [43] Sponsors hold authority over workers' visas, passports, and residency permits, often resulting in practices such as document confiscation, wage delays, and restrictions on movement, which international observers describe as enabling forced labor conditions.[44] [45] Kuwaiti law requires sponsors to cover recruitment fees, housing, and medical care, but violations are common, particularly for domestic workers excluded from standard labor protections until partial reforms.[46] In construction and service sectors, workers face excessive hours—up to 12-16 daily without overtime pay—and deportation for absconding, defined as leaving employment without permission.[47] Kuwait introduced Law No. 68 of 2015 for domestic workers, mandating one day off weekly, annual leave, end-of-service indemnity, and a maximum 10-hour workday, alongside a minimum wage of 60 Kuwaiti dinars (about $196) monthly.[45] Enforcement through the Public Authority for Manpower includes hotlines and inspections, yet reports document persistent abuses like physical beatings by employers or security forces, with at least five foreign nationals alleging assaults in detention in 2022.[47] Job mobility reforms in 2019 allowed transfers after three years or with mutual consent, but private recruitment agencies often impose illegal fees, exacerbating debt bondage.[25] In June 2025, Kuwait reinstated employer approval for private-sector expatriates to exit via mandatory electronic travel permits, effective July 1, reversing a 2020 abolition of exit/no-objection certificates and drawing criticism for heightening entrapment risks in abusive situations.[48] [49] [50] Concurrently, June 2025 regulations tightened expatriate hiring quotas and verification to curb illegal employment, aligning with broader GCC efforts to localize jobs amid economic diversification.[51] Despite these adjustments, the system's core sponsor controls persist, with Human Rights Watch attributing ongoing vulnerabilities to inadequate judicial recourse for migrants, though Kuwaiti authorities maintain that reforms enhance worker safeguards.[48] [46]Lebanon
The kafala system in Lebanon binds migrant workers, particularly domestic workers, to individual sponsors who control their immigration status, employment, and mobility. Enacted through administrative regulations rather than comprehensive legislation, it exempts domestic workers from the 1946 Labor Code, subjecting them instead to a standard unified contract promulgated by the Ministry of Labor in 2010. This contract mandates recruitment through licensed agencies but permits sponsors to retain workers' passports, restrict exit visas, and dictate work conditions without enforceable limits on hours or wages. As of 2024, an estimated 100,000 to 150,000 migrant domestic workers remain under the system, down from 250,000 pre-2019 due to economic collapse and outflows, with the majority being women from Ethiopia (over 50%), Kenya, the Philippines, Sri Lanka, and Bangladesh.[52][1][53] Employers under kafala assume legal responsibility for workers' visas but exploit the arrangement to impose indefinite contracts, often exceeding 18-22 hours daily without rest days or overtime compensation, as the 2010 contract specifies only a vague "reasonable" workload. Passport confiscation occurs in over 90% of cases documented by advocacy groups, rendering workers illegal if they flee abuse and vulnerable to deportation or detention. Physical confinement to employer households is standard, with General Security prohibiting residence outside the sponsor's home, effectively isolating workers from external support. Sponsors can unilaterally cancel contracts for "absconding" if workers leave without permission, barring them from new employment without settlement of disputed claims, which favors employers due to weak dispute resolution at the Labor Ministry and courts.[54][55][52] Abuses are systemic, driven by the power imbalance: Human Rights Watch documented 35 cases of sexual violence and 28 suicides or attempted suicides among domestic workers from 2019-2021, attributing them to isolation, verbal harassment, and beatings, with perpetrators rarely prosecuted under Article 523 of the Penal Code, which reduces sentences for "honor"-based assaults. Amnesty International reported forced labor and trafficking by recruitment agencies charging workers fees up to $3,000, repayable through bonded service, exacerbating debt bondage. Economic crises amplified vulnerabilities; post-2019 currency devaluation left 70% of workers unpaid for months, prompting mass abandonment by sponsors unable to afford upkeep, while COVID-19 curfews in 2020 confined workers without access to testing or repatriation. By October 2024, Israel's military actions displaced thousands more, stranding workers without wages or exit permissions amid sponsor flight.[52][54][56] Reform attempts have yielded minimal change. In July 2020, the Labor Ministry proposed a revised contract extending partial Labor Code protections, including a 48-hour workweek cap and minimum wage, but unions and employers rejected it, citing cost burdens amid recession. Advocacy by Human Rights Watch and Amnesty International since 2019 has urged full kafala abolition and inclusion under the Labor Code, yet parliamentary inaction persists, with the system upheld by General Security's visa controls as of 2025. Partial measures, like a 2021 hotline for complaints, handle few cases effectively due to fear of retaliation. No verified abolition or decoupling of worker status from sponsors has occurred, maintaining the framework's core exploitations despite international pressure.[55][57][25]Oman
In Oman, the kafala system regulates migrant labor by requiring foreign workers to obtain sponsorship from an Omani employer or agent, who assumes legal responsibility for their visa, residency, and compliance with labor regulations. This binding arrangement prevents workers from changing employers without sponsor approval, restricts their ability to exit the country independently, and ties their legal status to employment continuity, with "absconding" from a sponsor punishable by fines, detention, or deportation. The system applies to the private sector, where expatriates predominate, comprising approximately 1.81 million workers as of May 2025, forming the bulk of the construction, domestic, and service industries essential to Oman's economy.[58][59][60] Employer controls under kafala include oversight of recruitment fees, housing, and repatriation, often leading to reported abuses such as wage withholding and passport confiscation, though official data emphasizes sponsor accountability for worker welfare. Enforcement relies on the Ministry of Labor, which investigates complaints but frequently results in deportations—641 migrant workers were deported for labor violations in 2023, including 414 for absconding—rather than systemic resolution of disputes. While Oman has denied the existence of kafala in formal reviews, the sponsorship framework persists, facilitating rapid workforce importation amid Omanization policies that prioritize citizen hiring in select sectors.[1][61][62] Incremental reforms have modified but not dismantled the system: a 2021 update permitted job changes upon contract completion or mutual consent, extending to domestic workers, yet practical barriers left most transfers unresolved. The 2023 Labor Law (Royal Decree 53/2023, effective July 2023) prohibited passport retention without consent, extended protections to domestic workers (previously excluded), banned hiring those under 21 for such roles, and introduced standardized contracts with minimum wage committees, overtime caps, and end-of-service benefits. These changes aim to balance employer authority with worker rights, but human rights assessments note persistent vulnerabilities, including recruitment debt bondage and limited judicial recourse, as the sponsor's immigration leverage endures.[63][64][65][66]Qatar
The kafala system in Qatar binds migrant workers to their employers as sponsors, who control visa issuance, residency permits, and initially mobility, facilitating the influx of labor for the country's rapid infrastructure development since the mid-20th century oil boom. Migrant workers, comprising approximately 94% of Qatar's workforce or over 2 million individuals primarily from South Asia including India, Nepal, and Bangladesh, enter under employer-sponsored visas that tie their legal status to the sponsor, historically enabling practices such as passport retention and restrictions on job changes without a no-objection certificate (NOC).[67][7] Prior to reforms, the system contributed to widespread exploitation, including wage withholding, excessive recruitment fees leading to debt bondage, and confinement in labor camps with inadequate conditions, particularly during the construction surge for the 2022 FIFA World Cup which required building eight new stadiums and extensive infrastructure. Qatari authorities reported 15,021 non-Qatari deaths between 2010 and 2019, with causes including cardiovascular events often linked to extreme heat exposure rather than direct construction accidents, though independent verification remains limited and many incidents were not investigated as work-related. Stadium construction fatalities were officially estimated at 400 to 500, contrasting higher claims from advocacy groups aggregating broader migrant mortality without causation specificity.[68][69][70] In response to international scrutiny, especially ahead of the World Cup, Qatar enacted reforms starting in 2017 with a minimum wage of QAR 1,000 (about USD 275) monthly for most workers, excluding domestic staff initially. By 2020, key kafala elements were dismantled: the exit permit requirement was abolished in March, allowing workers to leave without employer consent, and a September law permitted job changes without NOC after contract expiry or with 30 days' notice in cases of abuse, effectively reducing sponsor control over mobility. The International Labour Organization noted these changes, alongside wage protection systems and enhanced dispute resolution, as marking the end of the traditional kafala framework, though implementation relies on worker awareness and enforcement mechanisms like the Ministry of Administrative Development, Labour and Social Affairs (MADLSA) inspections.[6][24][71] Despite reforms, reports indicate persistent abuses as of 2025, including contract substitution where workers receive lower-paying roles than promised, non-payment of wages affecting thousands post-World Cup, and barriers to unionization or strikes, with employers retaining influence through sponsorship ties. Human Rights Watch and Amnesty International, drawing from worker testimonies, highlight inadequate remedy for past violations and ongoing vulnerabilities, particularly for low-skilled laborers facing deportation risks for complaints, though Qatari officials assert compliance via digital tracking and joint ILO monitoring. No full abolition has occurred, but partial adjustments have increased worker outflows and remittances, estimated at USD 20 billion annually, while enabling Qatar's economic diversification beyond hydrocarbons.[72][73][74]Saudi Arabia
The Kafala system in Saudi Arabia required migrant workers to obtain sponsorship from a Saudi citizen or entity, which granted the sponsor authority over the worker's visa, residency permit (iqama), and employment status. Sponsors were liable for the worker's compliance with immigration laws and could request deportation for violations such as absconding. This framework, formalized in the 1950s and expanded with oil-driven growth, regulated the entry and retention of expatriate labor essential for infrastructure and services.[75] Under the system, workers needed explicit sponsor permission to change employers, transfer sponsorship, or obtain final exit visas, effectively binding them to the initial contract terms. The Ministry of Human Resources and Social Development oversaw iqama issuance, with sponsors paying annual fees per worker to maintain sponsorship. Domestic workers, numbering in the millions and primarily from Asia and Africa, operated under bilateral agreements rather than the standard Labor Law, subjecting them to separate regulations that often omitted overtime pay, weekly rest, or end-of-service benefits.[1][25] Enforcement involved digital tracking via the Qiwa platform, where sponsors reported worker status changes, and violations like unauthorized job switching triggered fines up to SAR 100,000 (approximately USD 26,600) per case or blacklisting. Prior to 2021 adjustments, employers routinely confiscated passports, a practice deemed illegal but widespread, to prevent mobility. The system supported Saudization policies by reserving quotas for nationals while relying on migrants for low-skill roles, with expatriates comprising over 30% of the population and dominating private sector employment.[75][76]United Arab Emirates
The kafala system in the United Arab Emirates requires migrant workers to be sponsored by a local employer or company, which controls their residency visa, work permit, and legal status throughout their employment. Under Federal Law No. 8 of 1980 on labor relations, as amended, the sponsor assumes responsibility for the worker's immigration compliance, including obtaining entry visas and ensuring repatriation upon contract end, while workers are prohibited from transferring sponsorship without the kafeel's consent in most cases. This framework governs the majority of the UAE's workforce, comprising over 80% migrants as of 2022, primarily in construction, services, and domestic roles.[1][51] Employers hold significant authority, including the ability to cancel a worker's visa unilaterally, report absconding for contract breaches, and restrict exit from the country via travel bans, though passport confiscation is nominally illegal. Workers face restrictions on union formation and collective bargaining, with domestic employees largely excluded from core labor law protections under Federal Law No. 10 of 2017, leaving them vulnerable to non-payment of wages and arbitrary dismissal. Sponsors are obligated to provide housing, medical insurance, and end-of-service gratuity, enforced partially through the Wage Protection System introduced in 2009, which mandates electronic salary transfers, yet compliance varies, particularly for low-skilled laborers.[1][26][51] Reforms since 2011 have aimed to increase mobility, including the 2016 cancellation of the mandatory No Objection Certificate (NOC) for job changes after six months of service or contract expiry, allowing workers to switch employers via Ministry of Human Resources and Emiratisation (MoHRE) approval without prior sponsor consent. Additional measures, such as the 2018 flexi-permit for self-sponsored freelance work and job-seeker visas valid up to 120 days, target skilled migrants, while prohibitions on recruitment fees were reinforced in 2020 to curb debt bondage. The 2021 amendments to citizenship laws via Cabinet Resolution No. 56 of 2018 extended long-term "golden visas" to select professionals, bypassing traditional sponsorship, though these primarily benefit high earners and do not dismantle core ties for unskilled workers.[51][26][1] Despite reforms, enforcement remains inconsistent, with Human Rights Watch documenting over 100,000 cases of modern slavery conditions in 2021, including forced overtime and withheld passports, often treated as administrative fines rather than criminal offenses. Low-wage migrants, especially from South Asia, continue facing exploitation, as kafala's dependency enables visa trading and labor trafficking, with limited judicial recourse due to restricted access to free legal aid and deportation risks for complaints.[26][1]Reforms and Evolutions
Early Reforms in Bahrain and UAE
In 2009, Bahrain became the first Gulf Cooperation Council (GCC) member state to implement significant reforms to the Kafala system, transferring primary sponsorship responsibility from individual employers to the state-established Labour Market Regulatory Authority (LMRA).[77] This shift, enacted through Ministerial Decision No. 79 on the Mobility of Expatriate Workers, enabled migrant workers who had completed at least one year of service to change employers without requiring a no-objection certificate (NOC) from their current sponsor, provided they gave advance notice or resolved labor disputes via the LMRA.[30] The reforms aimed to enhance worker mobility and reduce employer leverage over visa status, though domestic workers and those under two-year contracts remained partially exempt, limiting the scope.[29] These changes followed mounting pressure from international human rights organizations and domestic labor shortages, with the LMRA processing over 100,000 work permit transfers in the initial years post-reform.[78] However, implementation challenges persisted, including employer circumvention through informal fees or threats, and the system's retention of exit visa requirements for leaving the country, which critics argued preserved core exploitative elements despite formal decoupling from private sponsors.[29] Bahrain's government described the measures as a full abolition of traditional Kafala ties, but independent assessments noted that while job-switching barriers decreased, overall dependency on sponsorship for residency endured.[79] In the United Arab Emirates (UAE), early reforms emerged around 2010-2011, focusing on easing job transfers for contract workers without prior sponsor approval. In December 2010, amendments to labor regulations permitted workers with expired contracts to obtain new work permits directly, bypassing the need for an NOC in such cases, as part of broader efforts to address recruitment abuses highlighted in federal labor inspections.[80] This was formalized in January 2011 through a policy directive from the Ministry of Labour, allowing migrants to switch employers upon contract completion or mutual agreement, without the previous sponsor's consent, provided no outstanding debts or disputes existed.[81] These UAE adjustments responded to rapid economic expansion and reports of over 4 million migrant workers facing restricted mobility, with the reforms applying initially to non-domestic sectors and excluding those under ongoing fixed-term contracts shorter than two years.[82] While praised for increasing labor market flexibility—evidenced by a reported 20% rise in approved transfers in 2011—the changes did not extend to domestic workers, who comprised about 10% of the migrant workforce and remained fully under Kafala sponsorship.[83] Observers, including labor economists, noted that enforcement relied on ministerial oversight rather than wholesale systemic overhaul, leaving vulnerabilities like passport confiscation and wage delays intact in practice.[81]Qatar's 2020-2022 Changes
In 2020, Qatar implemented key reforms to mitigate criticisms of its kafala sponsorship system, particularly amid international scrutiny over labor conditions for the 2022 FIFA World Cup infrastructure projects. On 20 August 2020, the government abolished the No-Objection Certificate (NOC) requirement, allowing migrant workers to transfer to new employers without approval from their current sponsor, thereby reducing employer control over job mobility.[84] This change was enacted through amendments to the labor law, enabling workers to initiate job changes via notification to the Ministry of Administrative Development, Labour and Social Protection, with new employers required to reimburse recruitment fees paid to the previous sponsor during the probation period (up to six months).[24] Complementing this, exit permit requirements were eliminated for most migrant workers effective January 2020 under Decision No. 95 of 2019, permitting departure from Qatar without employer consent, except for specific categories like domestic workers who must provide 72 hours' advance notice.[84] [24] Additional provisions introduced on 8 September 2020 allowed contract termination at the worker's discretion with one month's notice (or two months after two years of service), alongside compensation obligations for non-compliance equivalent to the notice period's wages.[24] A non-discriminatory minimum wage of 1,000 Qatari riyals (about $274 USD) per month was also established for all workers covered under the law, supplemented by 300 QAR for food and up to 500 QAR for accommodation if not provided in-kind; this took formal effect in March 2021.[84] [24] These measures facilitated notable labor market shifts, with the Ministry of Administrative Development approving over 348,500 job change applications between 1 November 2020 and 31 August 2022, a marked increase from prior years (e.g., 18,000 in 2019).[7] However, the reforms retained the kafala framework's fundamental tie of workers' legal residency and work permits to a single employer, preserving potential leverage for sponsors through mechanisms such as "absconding" penalties, which could lead to fines, detention, or deportation for contract disputes.[24] [7] Implementation challenges persisted, including inconsistent enforcement and barriers like recruitment debt, though International Labour Organization monitoring highlighted progress in reducing exit and mobility restrictions.[7]Saudi Arabia's 2025 Abolition
In June 2025, Saudi Arabia officially abolished the Kafala sponsorship system, transitioning to a contract-based employment framework for migrant workers as part of Crown Prince Mohammed bin Salman's Vision 2030 reforms aimed at economic diversification and labor market modernization.[85][86] This change affects approximately 13 million foreign workers, who previously required employer approval to change jobs, exit the country, or renew visas under the Kafala regime.[87][88] The new system emphasizes worker mobility and independence, allowing expatriates to switch employers without prior sponsorship consent through a digital platform that facilitates contract transfers and dispute resolutions.[89][90] Reforms include streamlined processes for salary recovery via court-free digital mechanisms and enhanced protections against arbitrary deportation, though employers retain responsibilities for contract enforcement and reporting.[91][92] Implementation began in phases throughout 2025, with full enforcement expected to reduce exploitation risks associated with the prior system's ties between worker legal status and individual sponsors.[93] While hailed as a historic step toward aligning Saudi labor practices with international standards, observers note that effective enforcement will depend on monitoring recruitment agencies and judicial oversight to prevent residual abuses.[94]Partial Adjustments in Other Countries
In Bahrain, the kafala system underwent partial modifications in 2009 through labor law amendments that permitted migrant workers to change employers or leave the country without a no-objection certificate from their sponsor, provided labor disputes were first adjudicated by the Ministry of Labor.[77] These changes reduced some employer leverage over job mobility but preserved the underlying sponsorship linkage for residency and work permits. In 2017, Bahrain introduced a flexi-visa or flexi-permit scheme allowing undocumented or irregularly statused migrants to self-sponsor, work for multiple employers, and operate semi-independently of a single kafeel, targeting regularization of an estimated 70,000 workers initially.[79] [1] The program was reversed later, with the flexi-permit canceled in 2022 and supplanted by a narrower initiative tied to chamber of commerce oversight, limiting its scope and reverting to stricter controls.[95] [1] Kuwait enacted incremental adjustments in 2016 via a ministerial decree enabling private-sector migrant workers to transfer sponsors without employer consent after three consecutive years of service and upon providing three months' notice, aiming to curb absolute employer authority over transfers.[79] Additional measures in subsequent years, including a 2024 domestic worker protection law establishing minimum standards for contracts, hours, and grievances, have sought to mitigate abuses while retaining the core kafala tethering of visas to sponsors.[96] These steps have not dismantled the system, as workers remain vulnerable to deportation threats and recruitment debts, with enforcement often inconsistent.[51] In Jordan, partial reforms have focused on domestic workers, including a 2008 unified contract mandating terms like maximum work hours (48 per week), paid leave, and access to labor courts for disputes, extending some protections previously absent under kafala.[25] However, these adjustments coexist with unchanged sponsorship rules binding workers' immigration status to employers, prohibiting unilateral job changes without approval, and excluding many from broader labor law coverage, resulting in ongoing reports of passport confiscation and wage withholding.[3] [94] Jordan's government has claimed progress through international partnerships, but the kafala framework's foundational elements persist without comprehensive overhaul.[97]Economic and Social Impacts
Contributions to Rapid Development
The Kafala system enabled Gulf Cooperation Council (GCC) countries to rapidly expand their labor forces with expatriate workers, who constitute the majority of the workforce in labor-intensive sectors such as construction and infrastructure development. In Qatar, immigrants form 88% of the population and have been essential in building modern infrastructure, including roads, hotels, hospitals, and skyscrapers in Doha, as well as the stadiums for the 2022 FIFA World Cup.[98][99] Similarly, in the United Arab Emirates (UAE), migrants account for 88% of the population and have driven the transformation of Dubai from a modest trading port into a global hub featuring landmarks like the Burj Khalifa and Palm Jumeirah, completed in the early 2010s through large-scale expatriate labor.[83] This influx of workers, often exceeding 90% of the construction sector's labor force across the GCC, facilitated accelerated economic growth by providing low-cost, scalable manpower for mega-projects tied to oil revenues and diversification efforts. The system's sponsorship mechanism allowed employers to recruit and deploy workers efficiently for time-bound initiatives, contributing to the region's GDP expansion; for instance, expatriate labor has been pivotal in sustaining sectors that propelled Qatar's economy, where without such workers, operations would cease.[100][101] In Saudi Arabia, migrant workers have supported Vision 2030 projects, including expansive urban developments, underscoring the Kafala framework's role in harnessing foreign labor for national transformation since the 1970s oil boom.[102] Overall, the Kafala system has underpinned demographic and economic shifts, with GCC states hosting approximately 31 million migrant workers who bolstered population growth and sectoral output, enabling the shift from resource-dependent economies to diversified ones with world-class infrastructure.[103] This labor model, while controversial, demonstrably accelerated development timelines that would have been infeasible with domestic workforces alone, as evidenced by the rapid urbanization and project completions in the past five decades.[104]Remittances and Benefits to Origin Economies
Migrant workers under the Kafala system in Gulf Cooperation Council (GCC) countries, primarily from South Asia, Southeast Asia, and Africa, remit substantial sums that bolster the economies of their origin countries by providing foreign exchange reserves, supporting household consumption, and funding investments in human capital. In 2023, GCC remittance outflows reached approximately US$110 billion, with a significant share directed to nations like India, Pakistan, Bangladesh, and the Philippines, where these inflows often exceed foreign direct investment and official development assistance.[105][106] These transfers, facilitated by low-cost channels and formal banking, have grown steadily, with global remittances to low- and middle-income countries projected at $685 billion in 2024, of which GCC-sourced flows constitute a key component for labor-exporting states.[107] In specific origin economies, remittances from Kafala workers drive measurable gains in poverty reduction and economic stability. For Pakistan, inflows hit $35 billion in 2024, equating to 9.4% of GDP and marking a 31% rise from 2023, which helped stabilize the balance of payments and boosted household spending on essentials like food and education.[108] India, the world's top recipient, absorbed $111 billion in 2022—largely from UAE, Saudi Arabia, and Qatar migrants—supporting rural development and contributing to a decline in poverty rates, as evidenced by household surveys linking remittances to improved living standards.[109][110] Bangladesh and the Philippines similarly benefit, with remittances financing small-scale enterprises and remittances averaging over 5-10% of GDP in these countries, enabling investments in health and skills training that enhance long-term productivity.[111]| Origin Country | Remittances as % of GDP (Recent Data) | Approximate Annual Inflow (US$B) | Primary GCC Sources |
|---|---|---|---|
| Pakistan | 9.4% (2024) | 35 (2024) | Saudi Arabia, UAE |
| India | ~3-4% (2022-2023) | 111 (2022) | UAE, Saudi Arabia, Qatar |
| Bangladesh | 5-6% (2023) | ~20-25 (2023) | Saudi Arabia, UAE |
| Philippines | ~8-9% (2023) | ~35-40 (2023 est.) | Saudi Arabia, Qatar |