In a groundbreaking move that signals a new era for foreign workers, Saudi Arabia has officially dismantled its long-standing Kafala sponsorship system. This historic decision marks one of the most significant labour reforms in the kingdom's recent history, directly impacting millions of migrant workers who form the backbone of Saudi Arabia's economy.
What Was the Kafala System?
For decades, the Kafala system governed the lives of foreign workers across several Gulf nations. Under this arrangement, migrant workers required a local sponsor (kafeel) for their employment and residency permits. This created an imbalanced power dynamic where workers couldn't change jobs or leave the country without their sponsor's explicit permission.
The New Labour Reforms: What Changes Now?
The abolition introduces three transformative changes for migrant workers:
- Job Mobility: Workers can now transfer employers once their contract ends without requiring their previous sponsor's consent
- Exit Freedom: The elimination of exit permits means workers can leave Saudi Arabia freely without sponsor approval
- Document Control: Workers will now hold their own passports and identity documents, ending the practice of employers withholding these crucial papers
Why This Matters for India's Diaspora
This reform holds particular significance for India, as Saudi Arabia hosts one of the largest Indian expatriate communities worldwide. With approximately 2.4 million Indian workers contributing to various sectors from construction to healthcare, these changes promise improved working conditions and greater professional autonomy.
A Step Toward Vision 2030
This landmark decision aligns with Crown Prince Mohammed bin Salman's Vision 2030 initiative, which aims to diversify the Saudi economy and modernize its society. By creating a more attractive environment for foreign talent, Saudi Arabia positions itself as a competitive global destination for skilled professionals.
The abolition of the Kafala system represents more than just policy change—it signifies a fundamental shift in how Saudi Arabia values and protects its foreign workforce, setting a new standard for labour rights in the Gulf region.
