Definition
The Kafala system is a sponsorship-based labor framework used across several Gulf Cooperation Council states that binds a foreign worker’s immigration status, employment authorization, and residency to a specific employer-sponsor (kafeel). Under this model, the sponsor assumes legal and financial responsibility for the worker, controlling their ability to change jobs, leave the country, or transfer sponsorship.
UAE Context
The UAE has undertaken significant Kafala reforms since 2020 to improve labor mobility and worker protections. Federal Decree-Law No. 33 of 2021 introduced the right for employees to change employers after serving notice, eliminated the requirement for employer consent to switch jobs, and decriminalized absconding. The introduction of freelancer visas, Green Visas, and Golden Visas further reduces dependency on single-employer sponsorship. Despite these reforms, the sponsorship framework continues to shape visa issuance, with mainland companies still required to sponsor employee residence permits.
Key Facts
| Item | Detail |
|---|---|
| Origin | Gulf region sponsorship tradition |
| Key reform law | Federal Decree-Law No. 33 of 2021 |
| Major changes | Job mobility without employer consent, end of absconding criminalization |
| Alternative pathways | Golden Visa, Green Visa, Freelancer Visa |
| Current status | Substantially reformed but sponsorship structure remains for standard visas |
Vision 2031 Relevance
Labor market modernization under Vision 2031 continues to move beyond traditional Kafala constraints. Reforms aim to position the UAE as a globally competitive talent destination by ensuring worker mobility, fair contractual protections, and multiple self-sponsored residency pathways that attract high-value professionals and entrepreneurs.