Datanomics: Kafala system abolition may end expats' misery in Saudi Arabia

Over 18 million workers were employed in Saudi Arabia in the second quarter of 2025 (Q2 CY2025). Out of these, nearly 77.5 per cent were foreign workers

Saudi Arabia recently abolished the Kafala system after over 50 years, replacing it with a newly-enacted labour law which prohibits a sponsor’s (Kafeel’s) control over his migrant worker’s visa, residency and job mobility. Workers are now allowed to transfer their sponsorship to a new employer without requiring Kafeel’s permission. They are also allowed to leave Saudi Arabia now, without seeking their employer’s consent and the employers are prohibited to hold the passports of these workers. The abolition of the Kafala system -- notorious for rampant human rights abuses -- is going to benefit millions of Indians and other expatriate communities working in the country. 

    

Over 18 million workers were employed in Saudi Arabia in the second quarter of 2025 (Q2CY25). Out of these, nearly 77.5 per cent were foreign workers-- the highest share since Q3CY2017. However, the average monthly wage paid to a foreign worker in Q2CY25. 

 

was just 35.64 per cent of what a Saudi worker received, despite working for more hours.

      

According to India’s Ministry of External Affairs website, 2.46 million overseas Indians live in Saudi Arabia. There were a total of 9.93 million workers employed in the private sector in Saudi Arabia in 2022. Out of these, 14.1 per cent were Indians while Pakistanis and Bangladeshis had a share of 12.22 per cent and 17.59 per cent respectively. Saudi workers accounted for a share of 22 per cent in 2022. 

      

No Saudi native served as a domestic worker in Q2CY25. There were 4.12 million foreign domestic workers employed in Q2 CY25, out of which servants and drivers were nearly 98 per cent.