Saudi Arabia has officially ended the Kafala labour sponsorship system, a rule that let hiring firms control foreign workers’ lives for decades. The change, announced by Crown Prince Mohammed bin Salman in June, clears a path for millions of migrant workers to move freely, seek new jobs, and leave the country without needing a sponsor’s permission.
Under the old Kafala rules, employers could withhold workers’ passports, lock them into a single job and even take unpaid wages. While the system was easier for skilled, white‑collar staff, it forced many construction and manufacturing workers—especially from India, the Philippines and other Southeast Asian countries—from into a life of restricted freedom. Workers could not file abuse complaints without a sponsor’s approval.
The reform fits into Vision 2030, Saudi Arabia’s multi‑trillion‑dollar plan to diversify its economy and boost foreign investment before major events like the 2029 Asian Winter Games. Vision 2030 also aims to give Saudi citizens more opportunities while building a more open, competitive market.
Around 13 million foreign workers will see their rights expand, including roughly 2.5 million Indians who will now have greater job mobility and stronger legal protection. The break from Kafala could also attract more international firms to set up shop in the Kingdom.
Human‑rights groups and the International Labour Organization (ILO) have long criticized the Kafala model, warning it creates forced labour and limits workers’ ability to change employers. The ILO noted in 2023 that the Kafala system isolates migrant workers and hinders labour‑market mobility across the Middle East.
Saudi’s decision signals a major shift in the country’s labour policy and may set a precedent for other Gulf states to follow. The new law promises a freer, safer working environment for millions who have powered Saudi’s economic rise for more than 70 years.
Source: ianslive
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