After decades of hardships under restrictive labor systems, Indian and other migrant workers in Saudi Arabia are set to gain freedom as the country announced the abolition of the Kafala sponsorship system. The move comes as a major relief to nearly 13 million migrant workers in the kingdom, including around 2.5 million Indians. Established in the 1950s, the Kafala system was designed to manage the flow of foreign labor essential for the Gulf’s economic development, but it tied workers’ residency, employment, and legal status to their sponsors, severely restricting their freedom.
Under the Kafala system, workers had to hand over their passports to employers upon arrival, and any change of job or exit from the country required the sponsor’s permission. This arrangement often left workers vulnerable to exploitation and abuse, drawing sustained criticism from human rights organizations and international labor bodies, which argued that it facilitated modern-day slavery and human trafficking in Gulf countries.
Saudi Arabia abolishes Kafala System, grants freedom to 13 million migrant workers: All about ithttps://t.co/VwVnYtUsFS
— CNBC-TV18 (@CNBCTV18Live) October 22, 2025
With the system now abolished, migrant workers in Saudi Arabia will have greater autonomy over their employment and residency. While countries like Israel and Bahrain have already dismantled similar systems, other Gulf nations such as Kuwait, Oman, Lebanon, and Qatar continue variants of Kafala. Across these countries, approximately 25 million foreign workers remain under sponsorship systems, including 7.5 million Indians, highlighting the continued challenges faced by migrant laborers in the region.