Explained And Analysis: What The End Of Kafala Means For 10 Million Migrant Workers In Saudi Arabia

By: Editor, The Eastern Times
Published: October 26, 2025

News In Short

In a historic labour reform, Saudi Arabia has officially abolished the Kafala (sponsorship) system, a policy that controlled the lives of millions of migrant workers for decades. The move, announced in June 2025, gives more than 10 million foreign workers — including 2.5 million Indians — greater job and travel freedom.

This step is part of Crown Prince Mohammed bin Salman’s Vision 2030, which aims to transform the kingdom’s economy, improve human rights, and reduce dependence on oil.

What Was the Kafala System?

Under the Kafala system, foreign workers in Saudi Arabia had to be “sponsored” by a local employer who controlled their visa, employment, and legal status.
This meant workers could not change jobs, leave the country, or renew their residence permits without the employer’s permission.

Human rights organizations have long criticized the system for leading to exploitation and abuse. Workers often faced:

Confiscation of passports
Delayed or unpaid salaries
Harsh working conditions
No legal protection in disputes

The system came under intense international scrutiny before the 2022 FIFA World Cup in Qatar, when reports of migrant worker deaths highlighted the poor labour practices across the Gulf.

What Has Changed Under the New Reform?

The new Saudi labour policy gives workers greater independence and control.
Key changes include:

Workers can change jobs without needing employer approval after completing their contract or with proper notice.
They can travel abroad freely, without requiring an exit or re-entry permit.
All job transitions and contract details can now be handled digitally through a government platform, ensuring transparency.

These reforms are expected to boost worker satisfaction and improve Saudi Arabia’s image on the global stage.

Why Did Saudi Arabia Scrap the Kafala System?

Ending the Kafala system is a strategic move tied to the kingdom’s Vision 2030 plan.
The reform aims to:

Attract global investment by showing commitment to fair labour practices.
Modernize the workforce and make job mobility easier.
Enhance human rights and improve Saudi Arabia’s international reputation.
Comply with global labour standards, especially those of the International Labour Organization (ILO).

By reforming its labour laws, the kingdom hopes to create a more efficient and competitive economy that can thrive beyond oil revenues.

Impact on Indian Workers

Saudi Arabia hosts around 1.34 crore (13.4 million) foreign workers, making up nearly 42% of its total population.
Among them, Indians form one of the largest groups, working across construction, healthcare, domestic services, and engineering.

For Indian workers, this reform could mean:

More Job Freedom: Easier movement between companies and better chances for fair employment.
Reduced Exploitation: Less employer control over passports, visas, and travel.
Improved Wages and Conditions: Increased competition could lead to better pay and treatment.

However, experts note that proper enforcement is crucial. The success of the reform will depend on how efficiently Saudi authorities monitor compliance and handle worker complaints.

Analysis: A Step Toward Fair Work and Global Image Repair

The end of the Kafala system marks a turning point for migrant labour rights in the Gulf. For decades, the system symbolized power imbalance and exploitation, leaving millions vulnerable.

By scrapping it, Saudi Arabia is sending a message to the world that it wants to treat migrant workers fairly and align with international norms.

Still, implementation challenges remain. Without strict oversight, some employers might find new ways to restrict worker mobility. Awareness among workers about their new rights will also be key.

For India, the reform is a welcome change. It could lead to safer migration, better working conditions, and stronger India–Saudi labour relations in the future.

Beyond Kafala: A New Chapter for Migrant Workers
Saudi Arabia’s decision to abolish the Kafala system is a landmark moment in Gulf labour history. Saudi Arabia’s decision to abolish the Kafala system marks a shift toward fairness and modern labour values. If properly implemented, the reform will improve the lives of millions, empower foreign workers, and help Saudi Arabia move closer to its Vision 2030 goals — building a modern, fair, and globally respected society.

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