The time period Kafala, that means “sponsorship” in Arabic, got here to signify a system throughout the Gulf underneath which employers exercised virtually full management over migrant staff.
Saudi Arabia has formally abolished its decades-old Kafala system, a labour sponsorship mannequin that lengthy ruled the lives of hundreds of thousands of migrant staff. The landmark determination, introduced in June 2025, marks a serious step towards enhancing labour rights and migrant welfare within the kingdom. The reform is predicted to learn practically 13 million overseas staff, largely from South and Southeast Asia.
What’s Kafala System?
The phrase Kafala, which implies “sponsorship” in Arabic, got here to symbolise a lifestyle throughout the Gulf, the place employers held near-total management over migrant staff. They might resolve whether or not a employee might change jobs, depart the nation, and even search authorized assist.
Launched within the Nineteen Fifties, the Kafala system was created to handle the inflow of low-cost overseas labour wanted to construct oil-rich Gulf economies. Each overseas employee was tied to an area sponsor, or Kafeel, who managed their employment, residency, and authorized standing.
Issues associated to Kafala System
Over time, the system led to critical abuses. Employers might confiscate passports, delay or withhold wages, and prohibit staff’ actions. With out permission from their sponsor, staff have been usually unable to alter jobs, return dwelling, or report mistreatment to authorities.
Human rights organisations incessantly described the Kafala system as a type of “modern-day slavery,” arguing that it stripped staff of their fundamental freedoms and left them extremely weak to exploitation.
Worldwide stress for reform
The system drew rising criticism from worldwide labour our bodies, overseas governments, and human rights teams. The Worldwide Labour Group (ILO) and several other NGOs accused Gulf nations of fostering circumstances that enabled compelled labour and human trafficking.
Saudi Arabia, with an estimated 13.4 million migrant staff — about 42 per cent of its inhabitants — has lengthy relied on overseas labour for home work, development, agriculture, and different industries. Many of those staff come from India, Bangladesh, Nepal, and the Philippines.
Home staff, particularly ladies, have been among the many most affected, usually residing in isolation and dealing with restricted authorized safety. Stories from rights organisations have documented instances of abuse, overwork, and unpaid wages.
Saudi Arabia’s determination to dismantle the Kafala system follows years of worldwide scrutiny and stress for reform. It additionally comes after related steps taken by different Gulf international locations, corresponding to Qatar, which revised its labour legal guidelines earlier than internet hosting the 2022 FIFA World Cup.
How abolishing Kafala System will affect migrant staff
The reform is a part of Crown Prince Mohammed bin Salman’s Imaginative and prescient 2030 plan -an initiative aimed toward diversifying the Saudi economic system, decreasing dependence on oil, and presenting a extra fashionable and progressive international picture.
Below the brand new contract-based employment mannequin, migrant staff could have better freedom and autonomy. They’ll now change jobs while not having their employer’s approval and depart the nation with out requiring an exit visa or sponsor’s consent, ending a long-standing restriction that usually trapped staff in abusive conditions.
Moreover, entry to labour courts and criticism mechanisms has been expanded, enabling staff to report violations and search justice extra successfully.
These measures are meant to deliver Saudi Arabia’s labour practices nearer to worldwide requirements and make the dominion a extra enticing vacation spot for expert professionals and international buyers.
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