Sponsorship System in Saudi Arabia have been a lot of trouble & pain to all the expatriate. A system wherein each and every expat acts as a labor under the sponsors known as Kafeels in the kingdom of Saudi Arabia. Al-kafala system was started in Saudi after the discovery of oil in the Gulf region in the 1950s which works as a recruiting framework.
Per Vision 2030 Saudi Arabia will be ending Sponsorship system in the kingdom. This will help all the expatriates to work as per the contract and would lead to limiting the relationship between the employer and the expatriate worker to the employment contract that defines the rights and duties of the both the parties.
End of Sponsorship System
This step will definitely help Saudi Arabia to boost its economic reforms along with it Vision 2030.
After the end of Kafala system, Expats will get full freedom of moving as per the employment contract. This is another step after the new residency system which will give expats power to issue visa to their relatives into the kingdom hence attracting move visitors to Saudi Arabia and attracting more capital.
Sponsorship (Kafala) System was in place since 1371 which used to govern the rules between the employer and employees. Though the Sponsorship system have gone through several changes over the years many international organizations have asked to abolish the system.
On the other hand, the abolition of the sponsorship system is expected to bring about many advantages to the Saudi labor market while supporting the competitiveness of citizens to that of expatriate workers.