Saudi Arabia Abolishes Kafala System

In June 2025, Saudi Arabia officially abolished the decades-old Kafala (sponsorship) system, a move set to transform the rights of over 10 million migrant workers, including 2.5 million Indians.

Key Highlights:

• New Worker Rights:
  Under the new Labour Reform Initiative (LRI), foreign workers can now:
  • Change jobs without employer approval after contract completion or due notice.
  • Travel abroad without needing an exit or re-entry permit from their sponsor.
• About the Kafala System:
  The Kafala system tied a worker’s employment and residency to their Saudi sponsor (employer), who had control over visa status, job changes, and travel permissions. This system often led to worker exploitation and limited freedom of movement.
• Global Scrutiny and Human Rights Concerns:
  The Kafala model faced international criticism, especially ahead of the 2022 FIFA World Cup in Qatar, when reports emerged of thousands of migrant worker deaths, mostly from South Asian countries.
• Part of Vision 2030 Reforms:
  The reform aligns with Crown Prince Mohammed bin Salman’s Vision 2030, aimed at modernising Saudi Arabia’s economy, improving labour standards, and enhancing the kingdom’s global image.

Source: HT