Saudi Arabia has taken the most humanitarian decision in its history in June 2025. The government officially ended the kafala (sponsorship) system, which had been a burden on migrant workers for decades. The move is part of Crown Prince Mohammed bin Salman’s Vision 2030 policy, which aims to free the country’s economy from oil dependence and modernize the labor market.

This decision will directly provide relief to about 1.34 crore foreign workers, which includes about 25 lakh Indians. The Kafala system was in force in the Gulf countries for a long time. Under this, for any foreign employee to work in the country, permission from a local sponsor i.e. employer was required. The employer not only controlled the visa and residency permit (Iqama) of the employee, but also had the right to change jobs or leave the country. This system gradually became a tool of exploitation. Many employers confiscated employees’ passports, withheld salaries and forced them to work. International organizations had described this system as akin to modern slavery.

What has changed in the new labor policy
The new law implemented by Saudi Arabia is based on a completely digital and transparent system. Workers will now have the freedom to change jobs without their employer’s permission, provided they have completed the contract or given proper notice. Employees will also not need an exit permit to leave or return to the country. All processes will now be done through online portal, which will prevent any kind of arbitrary behavior. This change presents Saudi Arabia as a modern, pro-human rights and investor-friendly country.

Big relief decision for Indian immigrants
This reform can prove to be a life-changer for Indians working in Saudi Arabia. Now, if any worker faces poor treatment or unfair wage policy, he can look for another job without any fear. Unlike earlier, impounding passports or withholding permission to go out will now be considered a crime. This will provide Indian expatriates with better security, fairer work environment and fair salary opportunities. This reform will not only increase individual freedom, but will also motivate companies to become more competitive. Will do.

Why was this reform necessary?
This step of Saudi Arabia is not only a labor policy but also a diplomatic message. The country now wants to show international investors and global institutions that it is serious in adopting the standards of human rights and transparency. The International Labor Organization (ILO) has been demanding the abolition of the Kafala system for years. Now this change will strengthen Saudi Arabia’s image globally and attract foreign talent to participate in the country’s economy.

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