Why ‘Kafala’ Labor Rules Are an Issue in Persian Gulf: QuickTake - Bloomberg

Why ‘Kafala’ Labor Rules Are an Issue in Persian Gulf: QuickTake - Bloomberg

For decades, Gulf Arab states have attracted scrutiny for migrant sponsorship rules widely criticized as abusive to the foreigners who make up large parts of their labor forces. Governments have taken gradual steps to reduce the scope for exploitation under the so-called kafala system and, in August, Qatar became the first to guarantee foreigners a minimum wage regardless of nationality. Now, Saudi Arabia is planning sweeping changes, easing restrictions on foreign workers in an effort to attract overseas talent and build a more flexible labor market.


1. Where does the kafala system come from?

During the oil boom of the 1970s, Gulf Arab states began bringing in large numbers of foreign workers to build infrastructure quickly and cheaply, and to provide services for their suddenly prospering societies. Kafala is an Arabic word meaning sponsorship or guarantorship, and has evolved into a system of employment. The six nations of the Gulf Cooperation Council -- Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the United Arab Emirates -- are most closely associated with the practice. It’s also used for some low-skilled workers employed in Lebanon and Jordan.