It is a common practice in Saudi Arabia that expat are running businesses of their own under the name of Saudi Kafeels because they cannot have their businesses on their own names. So they pay kafakat to their Saudi kafeels. Kafalat is an agreed upon amount paid to Saudi kafeel every month or on yearly basis.
The businesses include from barbar shops, tailoring shops, AC repair shops to restaurants. Also, in many cases they run contracting business. All these people make quite good money. Legally speaking they are employees of the company but actually they own and run the business. They manage the business and take all the risk. So there is nothing wrong except on papers they are employees.
Now Labor Minister Adel Fakeih has announced they want to curb this practice. They will monitor the transfer of money by expats through SAMA. Instead of going through all this hassle they should legalize this practice similar to UAE. That would increase the business activity in the country.
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