Kafala Reform During the Gulf War and its Impact on Indian Migrant Workers Kafala as a practice stems from its roots in the traditional worker hiring patterns pre-established since the 1970s era of the Oil Boom, when the major Gulf economies were largely dependent on oil for their economic sustenance and thereby requiring the hiring of workers not only from local premises but also from abroad, including South and Southeast Asia. Though the nature of employment remained disguised, leading to transparency woes from the perspective of the employee. Saudi Arabia abolished the Kafala system in June 2025, which could be seen as a landmark reform towards decent work under Vision 2030 of Crown Prince Mohammed bin Salman. The recent reforms are going to benefit over 2.6 million Indian migrant workers in the kingdom. The evolution has been from strict contract-based employment, where the workers were completely tied to the employer’s consent for their movement, to more of a...
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Kafala Reform During the Gulf War and Its Impact on Indian Migrant Workers The war in the Gulf has raised concerns about the migrant workers from other countries in Saudi Arabia and other nations. The recent conflict has led to further issues for workers, as the prolonged war has put pressure on the economies of nations in the Gulf and worldwide. Kafala has impacted the lives of millions of workers and has led to job losses, expatriation, and vacancies for the impacted. The ongoing conflict amongst regional economic players has impacted the Indian workers in industries and other sectors, leading to mass repatriation and the workers returning home due to excessive pressure. Scale off and wage declines are due to the economic pressure the war has brought. The Indian agencies are trying to facilitate safe repatriation for their workers. The Trade declines have impacted the export market for India and other nations in their geo-economics with India. It is to be ensure...
Abolition of Kafala in Saudi Arabia: Impact on Indian Migrant Workers
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Abolition of Kafala in Saudi Arabia: Impact on the Indian Migrant Workers By Satyendra Singh The abolition of the Kafala System in Saudi Arabia in June 2025 has been an evolutionary step in the direction of reforming the Labour Ecosystem prevailing in the nation. The step marks an incredible advance towards pragmatic policymaking on the issue of Labour Welfare. It is pertinent to note that all the series of reforms undertaken are the result of massive protests by the employee community due to excessively exploitative tendencies in organising and treating labour in the workplace. International pressure due to non-alignment with ILO Conventions and the Saudi Crown Prince Mohammad bin Salman’s VISION 2030 are the other driving forces for the reform. The fact that Saudi Arabia and its association with Kafala treads a long past is itself a fact to be looked at in-depth, as the strategic evolution from Sponsor-based to Contract-based nature of employment is the biggest ever ...