Labor rights groups on Wednesday welcomed Bahrain's decision to become the first Gulf Arab state to end a system binding foreign workers to employers, a practice critics say is open to abuse. The state Minister of Labor, Majeed al-Alawi, said the new policy would create a “more liberalized and dynamic” labor market by allowing workers to move from one employer to another. “Hopefully it will create an incentive for employers to compete ... to attract workers with better working conditions,” said Nisha Varia, who monitors global migration issues for New York-based rights group Human Rights Watch. She called on larger neighboring countries like Saudi Arabia to follow suit. Many low-wage jobs in the Gulf countries are filled by Asian expatriate workers whose residency permits are typically linked to a sponsoring employer. Critics say the sponsorship system is open to exploitation, with some employers withholding pay, holding onto workers' passports and trapping them in potentially abusive situations. Switching to a new job can put workers in violation of local laws. “Sponsorship is not humane. We think sponsorship is outdated,” Al-Alawi said in an interview. “This will bring our laws into the 21st century.” About half of Bahrain's 1 million residents are foreigners. In some Gulf countries, such as the United Arab Emirates and Qatar, expatriates outnumber citizens by at least four to one. Many unskilled workers rack up large debts in their home countries to find work in the Gulf. Marietta Dias, a spokeswoman for the Bahrain-based Migrant Workers Protection Society, said the country “is leading the way” in terms of Gulf immigrant labor issues.