Saudi Arabia has formally scrapped its 50-year-old kafala (sponsorship) system, a move NDTV reported on 22 October that directly benefits an estimated 2.5 million Indian expatriates. Under kafala, foreign workers were tied to a single employer who controlled job changes, travel and even passport custody. The abolition—part of Crown Prince Mohammed bin Salman’s ‘Vision 2030’ reforms—grants expatriates the right to switch jobs after serving notice and to exit the Kingdom without a sponsor’s permission.
For Indian IT, healthcare and construction professionals, the change promises greater bargaining power and labour-market fluidity. Recruiters anticipate a surge in mid-contract role transfers, while global Indian firms can now redeploy staff across GCC projects with fewer bureaucratic hurdles. The Indian Embassy in Riyadh is preparing updated advisory notes and digital exit-permit guidance to reflect the new regime.
Human-rights groups have hailed the reform as a watershed moment in the Gulf. However, lawyers caution that implementation details—such as the digital ‘Mobility Permit’ system and minimum-service thresholds—will determine how transformative the policy becomes. Indian community organisations are launching helplines to educate workers about their new rights and to monitor employers who may attempt to bypass the rules through contract clauses or retention bonuses.
Indian staffing agencies must also adapt. The Ministry of External Affairs’ eMigrate portal plans to embed compliance checks ensuring that Saudi offer letters no longer reference kafala restrictions. Failure to comply could invite blacklisting under India’s Emigration Act. With the Gulf remaining India’s largest remittance corridor (US$55 billion in 2024-25), smoother worker mobility could further bolster cross-border talent flows and bilateral trade.
For Indian IT, healthcare and construction professionals, the change promises greater bargaining power and labour-market fluidity. Recruiters anticipate a surge in mid-contract role transfers, while global Indian firms can now redeploy staff across GCC projects with fewer bureaucratic hurdles. The Indian Embassy in Riyadh is preparing updated advisory notes and digital exit-permit guidance to reflect the new regime.
Human-rights groups have hailed the reform as a watershed moment in the Gulf. However, lawyers caution that implementation details—such as the digital ‘Mobility Permit’ system and minimum-service thresholds—will determine how transformative the policy becomes. Indian community organisations are launching helplines to educate workers about their new rights and to monitor employers who may attempt to bypass the rules through contract clauses or retention bonuses.
Indian staffing agencies must also adapt. The Ministry of External Affairs’ eMigrate portal plans to embed compliance checks ensuring that Saudi offer letters no longer reference kafala restrictions. Failure to comply could invite blacklisting under India’s Emigration Act. With the Gulf remaining India’s largest remittance corridor (US$55 billion in 2024-25), smoother worker mobility could further bolster cross-border talent flows and bilateral trade.
