Historic Reform: Saudi Arabia Ends Kafala | What It Means For Indian Workers

A historic reform in Saudi Arabia. After nearly seven decades, the Kafala system — long condemned as a tool of modern-day slavery — has finally been abolished. Announced in 2025, the move fulfills one of Crown Prince Mohammed bin Salman’s Vision 2030 goals — to transform the Kingdom’s labour system, economy, and global image. The reform impacts 13 million migrant workers, including 2.5 million Indians, who make up one of the largest foreign workforces in the country. Under the old system, migrant workers were tied to their employers, unable to change jobs, leave the country, or seek legal help without permission. Employers could confiscate passports and delay pay — often with total impunity. Now, under the new contract-based framework: Workers can change jobs freely, exit visas no longer need employer consent, workers have direct access to legal protection and labour courts. The Kafala system remains in place in parts of the UAE, Bahrain, Kuwait, Oman, Lebanon, and Jordan, often in disguised forms.