The Indian Diaspora
Gulf Workers and the Kafala System
How millions of Indians work in Gulf countries under the kafala sponsorship system, the recruitment costs and risks they face, and recent reforms.
Around 9 million Indians live in Gulf countries.
Who they are
- Many work in construction, domestic work, retail, transport and services.
- Many come from Kerala, Uttar Pradesh, Bihar, Tamil Nadu and Rajasthan.
The kafala system
- Workers are tied to a sponsor (kafeel), usually the employer.
- Changing jobs or leaving the country has often required the sponsor’s permission.
- This gives employers great power over workers.
Problems
- High recruitment fees, often paid by workers, leading to debt.
- Passport confiscation.
- Wage theft and delays.
- Heat and unsafe conditions.
Reforms
- Qatar changed labour laws in 2020 before the World Cup, including a minimum wage and easier job changes.
- Saudi Arabia introduced labour reforms in 2021 allowing some job mobility.
- Implementation varies.
India’s role
- The eMigrate system registers workers going to certain countries.
- Emigration Check Required passports for less educated workers.
Economic importance
Gulf remittances support millions of Indian families.
The recruitment debt
A worker from UP pays an agent 1.5 lakh rupees for a job in Saudi Arabia. He spends his first year's earnings repaying the loan.
Thinking Gulf migration is only about high pay
Workers face recruitment debts and restrictive sponsorship rules.
Key takeaways
- Around 9 million Indians live in the Gulf.
- The kafala system ties workers to sponsors.
- Recruitment fees and wage theft are problems.
- Qatar and Saudi Arabia introduced reforms.
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