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The Kafala or Kafil system will be abolished in Saudi Arabia very soon. The Reuters news agency quoted Saudi Arabia’s business daily ‘Maal’ on Tuesday.
Citing the Saudi Arabian Ministry of Human Resources and Social Development, the newspaper said the kafala system would be abolished in the first half of next year. Saudi Arabia is abolishing the practice of working outside the name of a certain Saudi citizen, or doing business on their behalf, in exchange for a monthly dividend from that Saudi citizen.
Saudi Arabia’s Ministry of Human Resources and Social Development was due to make an announcement on Wednesday. It has been postponed for a week.
Kafala Practice – A practice in which each expat will work on behalf of one or another Saudi citizen. Or do business on your behalf. In return, you will give him a portion of the earnings each month. Expats have to face various problems due to the kafala system. In many cases, Saudi citizens or sponsors do not protect the rights of expatriates, but instead benefit from wasting expatriates’ money. In Saudi Arabia, millions of expatriates, including Bangladeshis, have become illegal due to the injustice of Kafila or Kafil and many are trapped in an illegal and uncertain life in Saudi Arabia.
If this practice is abolished, expatriates will go directly to the Ministry of Labor. The Ministry of Labor will then be the guardian of the expatriates. The Ministry of Labor has to take a certain amount of money, but in that case the expatriate’s money will be lost and the possibility of it becoming illegal will be reduced. The Saudi Ministry of Labor has long been analyzing the matter. In the end, Saudi Arabia is on the verge of abolishing the kafalah system.
A large portion of Saudi expatriate traders approach in fear, when their sponsor sits down to ask for a large sum of money, or when I know he is looking private and taking over the business himself. Since the store or business is in the name of the sponsor, there is not much of a chance for legal help in such cases.
After the abolition of the kafala system, traders will be able to do their own paperwork in collaboration with the ministries concerned and will not be afraid of losing their business. Expatriate sponsors can do many things, such as renew ikama and obtain an exit and re-entry visa independently without any obligation.
According to the announcement of the Ministry of Labor and Human Resources, the official announcement of the abolition of kafala and kafil will be made next week and will be implemented in the first six months of 2021. On May 14, 2016, a decision was made in the Saudi government cabinet. If implemented, more than one crore of expatriates living in the country will reap the benefits.
This will be the latest in a series of sustained economic reforms in line with the 2030 Vision of the Saudi monarchy.
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