Explanation:

The kafala, or sponsorship, system defines the relationship between foreign workers and their local sponsor, or kafeel, which is usually their employer. It is found in the Gulf Cooperation Council (GCC) countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—as well as Jordan and Lebanon.

• Under this system, the state gives local individuals or companies sponsorship permits to employ foreign laborers. It was created to supply cheap, plentiful labor in an era of booming economic growth, and its defenders argue that it benefits local businesses and helps drive development.
• The system has become increasingly controversial, and there is growing recognition that it is rife with exploitation. The lack of regulations and protections for migrant workers’ rights often results in low wages, poor working conditions, and employee abuse.

Hence option 4th is correct.