Saudi Arabia Scraps Kafala System: What It Is And How 1.34 Crore Migrants, Including Indians, Will Benefit | World News
Riyadh: Saudi Arabia has officially scrapped its 50-year-old Kafala system, a major labor reform for migrant workers that has been described as historic. The decision, first announced in June 2025, affects approximately 1.34 crore foreign workers, primarily in India, Bangladesh, Nepal and the Philippines.
What was the Kafala System?
The kafala, or sponsorship, system gave employers complete control over the legal status, residence, job mobility, and travel of migrant workers. Workers often needed permission to leave the country, change jobs, or access legal aid. Each employee was affiliated with a ‘kafeel’ (sponsor).
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Why Was It Facing Global Criticism?
Kafala, originally designed to regulate immigrant labor in the oil-rich country, frequently enabled abuses. Human rights groups have called it “modern slavery.”
The reports highlighted cuts in salaries, delays in payments, confiscation of passports, restricted movements and limited applications for workers facing exploitation.
Who Will Benefit Most?
Saudi Arabia is home to 1.34 crore foreign workers, accounting for almost 42% of the population. Immigrants play key roles in construction, agriculture, domestic work and service sectors. Women in domestic work, who have historically been among the most vulnerable, are likely to gain the most from reform.
Fundamental Changes in the System
The new framework introduces contract-based employment. Workers can now change jobs without the employer’s prior approval. An exit visa and sponsor approval are no longer required to leave the country. Labor courts and complaint mechanisms provide legal recourse to safely report abuse.
The reforms are in line with Crown Prince Mohammed bin Salman’s Vision 2030. Saudi Arabia aims to reduce its dependence on oil, modernize its economy and raise labor standards to global levels.
The changes are expected to attract foreign investment and skilled professionals, as well as signal a progressive shift in workers’ rights.
Impact on Indian Workers
More than 1.3 billion Indian expatriates in Saudi Arabia will benefit from the reforms. Greater independence, legal protection and mobility will improve living and working conditions.
The changes mark a turning point for millions of people who long faced uncertainty under the old system.
