The move by Saudi Arabia to end the decades-old Kafala system, also known as the “slavery of the modern era,” is among the most remarkable labour reforms in the recent history of the Gulf region. The reform liberates approximately 13 million migrant workers, among them over 2.6 million Indians. It is a historic development, but it raises an important question — will it truly protect migrant workers from exploitation, or is it merely a renamed continuation of the same controls?

India is one of the largest sources of international migrants in the world, with almost 18 million people overseas. The Gulf has been the most attractive destination, and Saudi Arabia alone hosts an estimated 2.6 million Indian workers. In 2024, India received more than USD 129 billion in remittances, mostly from Gulf countries. Despite the economic significance, labour conditions in Saudi Arabia have been extremely harsh. More than 14,000 Indian workers have died in Saudi Arabia since 2016 — a shocking number that highlights the exploitative nature of the system.

Exploitation of migrant workers has not been an isolated occurrence. Unpaid salaries, confiscated passports, unsafe living conditions, and even violence have been rampant. The case of Haseena Begum, a trafficked nurse from Karnataka in 2017, and Mahavir Yadav, a labourer who succumbed to abuse, reflect the widespread absence of labour protection laws. Amnesty International and Human Rights Watch report thousands of such cases in the Gulf every year.

The abuse was systemic and institutional. Under the Kafala system, the legal rights of a worker depended entirely on a single employer known as the “Kafeel.” The Kafeel held complete control over a worker’s visa, job mobility, and exit rights. Workers attempting to flee faced arrest, deportation, or charges of absconding. The International Labour Organization’s definition of forced labour — “work done under threat” — directly applied to the Kafala system.

Why did Saudi Arabia dismantle it now? Vision 2030, led by Crown Prince Mohammed bin Salman (MBS), aims to diversify the Saudi economy beyond oil, attract foreign investment, and present the Kingdom as a rules-based nation. Abolishing Kafala was essential to projecting this image. The October 2025 reforms substitute Kafala with a contractual employment framework. Workers can now switch employers after their contract ends or by giving reasonable notice. They can also travel abroad without exit permits and have access to legal protection. Digital portals will improve transparency and reduce employer interference, including salary withholding and passport confiscation.

Saudi Arabia has taken a bold step that other Gulf states — which collectively employ about 24 million migrant workers, including 7.5 million Indians — have been hesitant to follow.

This transformation is particularly significant for Indian workers. Nearly half of all Indian emigration clearances between 2021 and 2024 were issued for Saudi Arabia, making it India’s leading labour destination. Greater job flexibility will dismantle exploitative recruitment networks, reduce reliance on middlemen, and potentially increase wages. Women, especially domestic workers who have long remained outside scrutiny, may benefit from increased freedom to change employers.

Workers subjected to forced labour will now have access to legal channels that previously did not exist. However, optimism must be balanced with reality. Ending the Kafala system will be challenging because it has become deeply embedded in the culture. Successful implementation requires enforcement, transparency, and strong political will. Overburdened labour courts may struggle with the influx of complaints. Digital systems will only help if available in multiple languages and protected from employer manipulation.

Ending the Kafala system is an important milestone, but it is not the final step. Instead, it marks the beginning of a new phase that requires careful monitoring, worker education, international cooperation, and a broader cultural shift in recognising the dignity of migrant labour. Whether this reform genuinely transforms migrant labour rights will depend on how well it is implemented and enforced.

As variations of Kafala still exist in Kuwait, Oman, the UAE, and Lebanon, labour exploitation remains widespread in the region. Saudi Arabia’s move sets a precedent that may pressure other Gulf Cooperation Council (GCC) states to act, and sends a message to international organisations that sustained pressure works. More importantly, it gives hope to millions of migrant workers — including Indians — whose lives and dignity have long been tied to the systems that govern their labour.

Dr. Zheer Ahmed is Assistant Professor at the School of Geopolitics and Public Policy, Faculty of Liberal Studies, REVA University, Bengaluru.