Saudi Arabia on Wednesday announced new plans to simplify foreign workers' contractual restrictions, improving a controversial seven-decade-old sponsorship system known as kafala. Accordingly, Saudi Arabia will remove several key restrictions on foreign workers in an overhaul of the kingdom’s controversial labor policies, part of a plan to attract overseas talent and increase job market mobility.

The plans, to take effect in March 2021, aim to make the Saudi labour market more attractive, the deputy minister for human resources said, by granting foreign workers the right to change jobs and leave the country without employers' permission.

"Through this initiative, we aim to build an attractive labour market and improve the working environment through 3 major services, available to all foreign workers in the private sector," Abdullah bin Nasser Abuthunain told to media reporters. He added: the move will help attract high-skilled workers and help achieve Vision 2030 objectives. Saudi Arabia's Vision 2030 reform plan is a package of economic and social policies designed to free the kingdom from reliance on oil exports.

The currently applicable kafala system generally binds a migrant worker to one employer. The new initiative will base the relationship between employers and workers on a contract that should be certified by the government and will allow workers to apply directly for services via an e-government portal, instead of a mandatory employers' approval.

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