Muscat: Saudi Arabia is likely to cancel the expatriate worker sponsorship system, known as kafala, and replace it with a new form of contract between employers and employees, the local media said on Tuesday.
The kafala system said has been in place for seven decades in Saudi.
More than one million expatriates are expected to benefit from the move, according to a report in Maaal online business daily.
Saudi Ministry of Human Resources and Social Development will make the official announcement in this regard in the coming week. The historic initiative is aimed at improving the contractual relationship between expatriate workers and their employers.
The sponsorship system, which has been in force for around seven decades, will be replaced by a work contract that regulates the relationship between employers and foreign workers. The current system, also known as the kafala system, ties workers to their employers, or sponsors, who are responsible for the employees’ visa and legal status.