October 24, 2025 | Riyadh, Saudi Arabia
In a sweeping overhaul of its labor laws, Saudi Arabia has officially dismantled the controversial Kafala sponsorship system after more than five decades, ushering in a contract-based employment framework that empowers over 13 million migrant workers with unprecedented freedoms. The landmark decision, announced in June 2025 and now fully implemented, marks a pivotal step in Crown Prince Mohammed bin Salman's Vision 2030 blueprint to modernize the kingdom's economy and bolster its global human rights standing.
The Kafala system—often dubbed "modern-day slavery" by critics—tethered foreign laborers to their Saudi sponsors (typically employers), who held absolute control over workers' visas, job mobility, and even exit permissions. This structure frequently enabled exploitation, including passport confiscation, wage theft, forced labor, and physical abuse, particularly affecting low-wage migrants from South Asia and Southeast Asia in sectors like construction, domestic service, hospitality, and agriculture. With expatriates comprising about 42% of Saudi Arabia's population—totaling around 13.4 million workers—the system's end is hailed as a game-changer, freeing individuals to switch jobs without sponsor approval after contract completion or notice, and to apply directly for exit/re-entry visas via digital platforms like Qiwa and Absher.
Under the new regime, migrant workers—previously bound like indentured servants—will enjoy enhanced protections, including guaranteed annual leave, rest days, and wage safeguards through the Musaned e-platform for contract transfers, especially for domestic staff who were largely excluded from prior labor laws. The Ministry of Human Resources and Social Development has rolled out reporting tools and partnerships with origin countries to monitor compliance and curb abuses, signaling a shift toward transparency and accountability.
For India's 2.5 million expatriates in the kingdom—the largest contingent among affected nationalities—this reform promises a lifeline against the perils of the old order. "Indian workers can now escape exploitative conditions more easily, negotiate better pay, and return home without barriers, potentially reducing distress cases and remittances disruptions," said a spokesperson for the Ministry of External Affairs in New Delhi, which has long advocated for such changes amid reports of over 20,000 Indian migrant deaths in Gulf countries since 2015. Labor unions and advocacy groups echoed the optimism, with the Gulf Labour Markets Observatory noting that the move aligns Saudi Arabia with International Labour Organization (ILO) standards, potentially attracting more skilled talent and foreign investment.
Grace Forrest, Founding Director of Walk Free, a global anti-slavery organization, praised the abolition as "a massive step forward for a country with the world's fourth-highest prevalence of modern slavery." She added, "This progress, after a decade of advocacy, gives tens of thousands of migrants in construction, hospitality, domestic labor, and health sectors a tangible chance at freedom and dignity." Yet, experts caution that true impact hinges on enforcement: "Digital tools are innovative, but without robust oversight, loopholes could persist," warned human rights analyst Abdullah Al-Hamid from Riyadh.
Rooted in Vision 2030's push to diversify beyond oil—aiming for a $1 trillion non-oil economy by 2030—the reform addresses international scrutiny, including backlash during Qatar's 2022 World Cup preparations. As implementation unfolds, Saudi officials project smoother labor flows, reduced turnover, and a more humane workforce, potentially reshaping the Gulf's migrant-dependent model. For now, from Riyadh's skyscrapers to remote labor camps, the winds of change carry whispers of hope for those long chained by sponsorship.
For More News Updates Follow Us On Www.tconews.in
