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Saudi Ends ‘Modern Slavery’ with Kafala System. Why It’s Significant for Indian Workers

The new contract-based system allows migrant workers to change jobs freely and exit the country without visas, benefiting 13 million workers under Vision 2030 reforms.

  • Saudi Arabia abolished its 50-year-old Kafala labour sponsorship system as part of Crown Prince Mohammed bin Salman, Crown Prince and Prime Minister's Vision 2030 reforms, reshaping migrant labour rights.
  • Mounting international pressure pushed reform as the system became indefensible amid scrutiny and domestic Vision 2030 pressures, while the International Labour Organization and human rights groups said sponsorship rules enabled forced labour.
  • Under the new contract-based employment model, migrant workers can change jobs without employer permission, travel without exit visas, and access expanded labour courts for grievances.
  • Around 13 million foreign workers stand to benefit as Saudi Arabia aims to attract global talent and foreign investors by aligning labour policies with international standards.
  • Rooted in the 1950s sponsorship system, Kafala bound migrants to sponsors who could confiscate passports, withhold pay, and restrict movement, which human rights groups called `modern-day slavery`.
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ABP News broke the news in India on Wednesday, October 22, 2025.
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