Riyadh: Saudi Arabia has formally scrapped its 50-year-old Kafala system, a serious labour reform hailed as historic for migrant staff. First introduced in June 2025, the choice impacts round 1.34 crore international staff, primarily from India, Bangladesh, Nepal and the Philippines.
What Was The Kafala System?
The Kafala or sponsorship system gave employers full management over migrant staff’ authorized standing, residency, job mobility and journey. Staff usually wanted permission to depart the nation, change jobs or entry authorized assist. Every worker was tied to a ‘kafeel’ (sponsor).
Why It Confronted International Criticism
Initially designed to control migrant labour within the oil-rich nation, Kafala usually enabled abuse. Human rights teams labelled it “modern-day slavery”.
Stories highlighted withheld wages, delayed funds, passport confiscation, restricted actions and restricted recourse for staff going through exploitation.
Who Will Profit Most?
Saudi Arabia hosts 1.34 crore international staff, virtually 42% of the inhabitants. Migrants are key in development, agriculture, home work and companies. Traditionally among the many most susceptible, girls in home work are more likely to achieve essentially the most from the reform.
Key Modifications In The System
The brand new framework introduces contract-based employment. Staff can now change jobs with out prior employer approval. Exit visas and sponsor consent are now not required to depart the nation. Labour courts and criticism mechanisms present authorized recourse to securely report abuse.
The reforms align with Crown Prince Mohammed bin Salman’s Imaginative and prescient 2030. Saudi Arabia goals to scale back oil dependence, modernise its economic system and lift labour requirements to world ranges.
The modifications are anticipated to draw international funding and expert professionals whereas signalling a progressive shift in employee rights.
Influence On Indian Staff
Over 1.3 crore Indian migrants in Saudi Arabia stand to learn from the reforms. Larger independence, authorized protections and mobility will enhance dwelling and dealing situations.
The modifications mark a turning level for tens of millions who’ve lengthy confronted uncertainty underneath the outdated system.