India, Oct. 23 -- In a landmark labour reform, Saudi Arabia has officially scrapped the decades-old Kafala (sponsorship) system that tied foreign workers' employment and residency to their employers. The move, announced in June 2025, which is part of the kingdom's broader Vision 2030 reforms, is expected to reshape the rights of more than 10 million migrant workers, including over 2.5 million Indians.

The Kafala system required foreign workers to have a Saudi sponsor, usually their employer, who controlled their visa and legal status. This meant that workers couldn't change jobs, leave the country, or even renew their residence permits without the sponsor's consent.

Human rights bodies long argued that this system often led to worker ex...