Saudi Arabia to end controversial ‘kafala’ foreign labour system, report says
- Rules that require sponsor for migrant workers have been criticised as form of indentured servitude
- Some economists argue system allows employers to hire cheaper, more easily exploitable staff, even as Saudi unemployment rises
Saudi Arabia is set to announce major labour reforms that could effectively end its controversial “kafala” system for foreign workers, a news outlet close to the government reported.
New rules governing foreign labour are expected to be unveiled as early as next week and would be applied from the first half of 2021, the online Maaal newspaper reported, citing unidentified sources. The changes were to be disclosed earlier this year but were delayed by the pandemic, according to Maaal.
The so-called kafala system – applied to foreign employees in Gulf Arab countries for decades – has been criticised at home and abroad as a form of indentured servitude.
Some economists argue it also entrenches an unbalanced labour market, where private employers hire cheaper and more easily exploitable foreign workers even as Saudi unemployment rises.
Foreign workers in Saudi Arabia currently must be tied to a sponsor whose permission they need to change jobs, open a bank account or even to leave the country on holiday.