Riyadh: Saudi Arabia has officially scrapped its 50-year-old Kafala system, a major labour reform hailed as historic for migrant workers. First announced in June 2025, the decision affects around 1.34 crore foreign workers, mainly from India, Bangladesh, Nepal and the Philippines.

What Was The Kafala System?

The Kafala or sponsorship system gave employers complete control over migrant workers’ legal status, residency, job mobility and travel. Workers often needed permission to leave the country, change jobs or access legal help. Each employee was tied to a ‘kafeel’ (sponsor).

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Why It Faced Global Criticism

Initially designed to regulate migrant labour in the oil-rich nation, Kafala often enabled abuse. Human rights groups labelled it “modern-day slav

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