The Kafala system, which Saudi Arabia decided to replace with a contract-based model, is:
- Aa system of Islamic banking without interest
- Ba sponsorship system that ties migrant workers to one employer
- Ca quota for hiring nationals in private companies
- Da tax on foreign remittances
Show answer and explanation
Correct answer: (b) a sponsorship system that ties migrant workers to one employer
Explanation
The Kafala system binds migrant workers to a sponsor-employer and is criticised as exploitative. Bahrain (2009) was the first Middle Eastern country to abolish it.