Kafeel System Ended in Saudi Arabia – Expats Can Now Apply for Permanent Residency Without a Sponsor in 2025
Kafeel System Ended in Saudi Arabia and working in Saudi Arabia were bound by the strict Kafeel (sponsorship) system, which gave employers and local sponsors complete control over a foreign worker’s legal status, mobility, and employment options. Changing jobs, starting a business, or even exiting the country required explicit approval from the sponsor. This system, originally designed to regulate labor migration, became a significant barrier to expat freedom and long-term stability.
However, in a historic reform aligned with Saudi Vision 2030, the Kingdom officially abolished the dependency on sponsors and introduced a new Permanent Residency Law, allowing expats to live, work, and invest without a Kafeel starting in 2025. This marks one of the most transformational policy changes in the history of the Gulf region.
Saudi Arabia has now positioned itself as a global economic hub open to international talent, skilled professionals, long-term residents, and investors seeking stability and independence. With this landmark decision, millions of expats who have contributed to the country’s development can finally secure their future in the Kingdom—without employer restrictions or fear of visa termination.
What Was the Kafala / Kafeel System and Why Was It Controversial?
The Kafala (sponsorship) system required every foreign worker in Saudi Arabia to be sponsored by a Saudi employer or individual known as a Kafeel. This sponsor had legal authority over the expat, controlling:
- Their work permit (Iqama)
- Their ability to switch jobs
- Their right to exit or enter the country
- In some cases, even their housing and movement
While it helped regulate migration flows, it often led to exploitation, job insecurity, and legal dependency. An expat could lose their legal status if the sponsor terminated employment or refused to renew paperwork.
This system was widely criticized by human rights organizations and international labor associations. With Saudi Arabia’s ambitious Vision 2030 reforms, the government recognized the need to replace the Kafeel model with a modern, rights-based residency system.
New Residency Law 2025 – Freedom From Employer Control
The Permanent Residency Law 2025 officially ends the requirement of sponsorship for eligible expats, giving them complete independence in terms of legal status and mobility. For the first time, expatriates can apply directly to the Saudi government for long-term residency, bypassing employers and middlemen.
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Key Features of the New Residency Law:
| Feature | Old Kafeel System | New PR System 2025 |
|---|---|---|
| Sponsor / Employer Required | Yes | No |
| Job Change Permission | Kafeel approval needed | Free movement between employers |
| Business Ownership | Limited / Not allowed | 100% ownership permitted |
| Property Ownership | Restricted | Allowed in approved zones |
| Family Sponsorship | Limited | Spouse, children & parents allowed |
| Exit / Re-entry Visa | Required | Not required |
| Residency Cancelled on Job Loss | Yes | No – Residency independent of job |
This new law empowers expats to settle permanently and build long-term financial and personal security in Saudi Arabia without being tied to a single employer.
Eligibility Criteria Kafeel System Ended Saudi Arabia 2025:
To apply for permanent residency, expats must hold a valid passport, have a clean criminal record, and pass a medical fitness test. Eligible applicants include skilled professionals such as engineers, doctors, IT experts, pilots, educators, or investors willing to buy property or establish a business in Saudi Arabia. Long-term residents with 10+ years of legal stay and stable income or pension may also qualify. Final income and investment thresholds will be announced officially soon.
Benefits of the New Residency Law 2025:
The biggest advantage of Saudi’s new residency system is total independence from sponsors or employers. PR holders can work freely, change jobs without restriction, start their own businesses, and purchase property across designated regions of the Kingdom. They can also bring their spouse, children, and parents under one residency permit, gaining access to healthcare, education, and public services similar to Saudi citizens. Moreover, travel freedom is granted without exit or re-entry visas, ensuring full mobility. With long-term legal stability, expats can finally plan their future without fear of visa cancellation.
Types of Residency Options Under the New Law
Kafeel System Ended in Saudi Arabia is expected to offer two main residency tiers:
1. Renewable 5-Year Permanent Residency
- Ideal for workers, mid-level professionals, and small investors
- Lower cost than traditional premium residency
- Renewable upon meeting income or employment criteria
2. Lifetime (Green Card Style) Residency
- One-time payment for permanent settlement
- Complete freedom in investment, travel, and business operations
- Best suited for established professionals & investors
Application Process – How Expats Can Apply Without a Sponsor
Once the official application portal launches, interested expats can follow these steps:
- Visit the Official Residency Portal (website will be announced soon)
- Create an Online Profile with passport and Iqama details
- Select Residency Type – 5-Year or Lifetime PR
- Upload Supporting Documents (qualification, employment, income, or investment proof)
- Provide Police Clearance Certificate from Saudi Arabia or home country
- Undergo Medical Test at approved health center
- Pay Residency Fees and Submit Application
- Receive Approval and Digital Residency Card
Processing time is expected to range from 30 to 60 days depending on category.
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How This Reform Impacts Different Expat Groups 2025:
For Workers & Labor Employees
- No fear of being trapped in jobs
- Ability to switch employers freely
For Skilled Professionals
- Opportunity to start private companies or consultancies
- Easier pathway to long-term residency and stability
For Investors & Business Owners
- 100% ownership rights – no Saudi partner required
- Ability to purchase real estate and commercial assets
For Families
- Secure future for children, access to schools and colleges
- Long-term residency security for aging parents
Important FAQs About the New Residency System 2025:
1. Has the Kafeel system officially ended in Saudi Arabia?
Yes. Under the new 2025 residency law, expats are no longer required to have a sponsor (Kafeel) to live or work in the Kingdom.
2. Can expats now apply for residency without an employer?
Yes. Eligible expats can directly apply for permanent residency through the government portal without linking their status to a company or individual.
3. Will I lose residency if I change or leave my job?
No. The new residency status is independent of employment, meaning you can switch jobs or even stay unemployed without losing your legal stay.
4. Can I bring my family under the new residency system?
Yes. Permanent residency holders can sponsor their spouse, children, and even parents without needing additional approval.
5. Can residency holders buy property or open a business?
Absolutely. PR holders can own real estate and register businesses with 100% ownership rights, just like Saudi citizens.
Conclusion – A New Future for Expats in Saudi Arabia 2025:
Saudi Arabia’s decision to end the Kafeel system and introduce sponsor-free residency is more than just a policy change—it is the beginning of a new era of freedom, security, and opportunity for millions of expatriates who helped build the modern Kingdom.
Whether you are a worker longing for independence, a professional seeking career stability, or an investor looking for growth, this law gives you the power to control your own future within Saudi Arabia.
With no sponsor dependence, full rights to work, invest, and bring family, Saudi Arabia is no longer just a temporary destination—it is now a permanent home for those who dream of staying.
