Saudi Arabia Abolishes Kafala System

Saudi Arabia has officially abolished the decades-old kafala labour sponsorship system, a controversial practice long criticised by international labour and human rights groups as a form of modern-day slavery. The move marks a major policy shift under Crown Prince Mohammed bin Salman’s Vision 2030 reform programme, aiming to reshape the country’s global image and attract foreign investment.

End of a Controversial Era

The kafala system, introduced in the 1950s, governed the employment of foreign workers by linking them to a local sponsor, or kafeel. This arrangement granted employers excessive control, including the authority to confiscate passports, restrict movement, and decide job changes or exits from the country. The system left millions vulnerable to exploitation and abuse, with limited legal recourse.

Human rights organisations, including Amnesty International and the International Labour Organization (ILO), have repeatedly condemned the practice. It was particularly harsh on domestic workers and women, who were often subject to physical and sexual abuse by their sponsors.

Scale of the Issue Across the Gulf

While Saudi Arabia’s decision has been hailed as a progressive step, similar systems persist in Kuwait, Oman, Qatar, and Lebanon. Across these nations, nearly 25 million migrant workers — including around 7.5 million Indians — remain under sponsorship-based labour regulations. The reform in Saudi Arabia is expected to benefit approximately 13 million foreign workers, 2.5 million of whom are Indian nationals.

The abolition follows years of international pressure, media scrutiny, and advocacy from rights groups documenting thousands of cases of wage theft, physical abuse, and human trafficking disguised as employment.

Reforms Driven by Global Ambitions

Saudi Arabia’s labour reforms align with its broader Vision 2030 strategy, which seeks to modernise the economy and improve its reputation ahead of major global events such as the 2029 Asian Winter Games. Analysts suggest that the move also reflects the country’s desire to reassure investors about labour rights and workplace ethics.

The change follows similar actions by Bahrain and Israel, which have already dismantled the kafala model. However, enforcement and monitoring remain crucial to ensuring that the reforms translate into real-world protections for workers.

Related GK Facts

• The kafala system originated in the Gulf region in the 1950s to regulate migrant labour inflows.
• According to the ILO, over 10% of the global migrant workforce is employed in the Gulf Cooperation Council (GCC) countries.
• India is the largest source of migrant workers to the GCC, sending over 8 million citizens annually for employment.
• Bahrain became the first Gulf nation to formally abolish the kafala  system in 2009.

Continuing Challenges and the Road Ahead

Despite the official end of kafala, experts warn that implementation gaps and loopholes could allow exploitative practices to persist. Monitoring mechanisms, worker awareness programmes, and diplomatic cooperation with labour-sending nations will be key to safeguarding migrant rights. For millions of workers seeking better livelihoods in the Gulf, Saudi Arabia’s reform offers hope — but also a reminder of the long struggle for dignity and fairness in global labour mobility.