The ending of the current kafeel sponsorship system is likely to take place in February, when a public authority for the recruitment of expatriate workers is expected to be set up, according to published reports.
For financial services executives looking to relocate to Kuwait, the new system could resemble that of Bahrain, which abolished its sponsorship system for foreign workers in 2009.
Human rights organisations are hopeful that the change will bring to an end what some liken to a form of modern-day slavery for some foreign workers employed in Kuwait as domestics, such as housekeepers, and in the country’s construction industry.
Human Rights Watch said it regarded the plan as "a significant step to address a major source of labour abuse" but that it needed more information on how the new system will work before endorsing it fully.
It remains unclear whether the change will apply to migrant domestic workers, "who make up a significant proportion of the country’s migrant workers but who are not covered by any labor law protections", the organisation said in a statement.
News of Kuwait’s plans has received considerable coverage by media in countries like the Philippines, where many of Kuwait’s immigrant workers are from.
According to AFP, some 2.35 million foreign workers live in Kuait, compared with just 1.1 million native Kuwaitis.