It's the same in the UAE. Here you have the possibility to hire a maid through an agency or bring your maid with you when you relocate in the UAE. Most are live in maids/nannies. I will not deny that mistreatment happens, like Minte mentioned, this also happens in other countries. What bothers me a bit that you never hear any opposite storries. In many families the maid/nanny belongs to the family, get treated well and does not want to return back home after her contract is due.
The UAE changed some laws regarding maids a couple years ago. First of all, everybody who wants to hire a maid has to fullfill certain requirements. Secondly there are agreements between countries where the maids are coming from and the UAE Govt. These rules are different for different Nationalities. The new Law regulates the working days and hours, a minimum wage, days off etc.
It will not work that a maid will be sponsored by a company and goes to work with a family just for certain hours. It's not possible to run a family like a factory. That may work for a maid who is suppose to do only the cleaning, but not for one who does the cooking and looking after the children. Where would they live if not with the family? How would they get to the house if not living there? Other problems also would occur. Most maids you can not compare with a single educated Philippina nurse, secretary etc who lives on her own. Maids being sponsored by a company would mean to establish a "female maids camp". Who wants that?
Sugesstions for the Saudi Govt.? Well I think the UAE made some good decisions.
Punishment? If the employer abuses any Law, he should be banned from hiring any other domestic help. Rape, sexual abuse etc. also should be punished additional like doing it to any other woman.
If the employee abuses any Law, she should be sent home and an Immigration ban should be imposed.
This maybe would make both parties thinking before acting.
In case you are interested in the mentioned UAE Law, please let me know.
Take care.
edit: below please find some articles you may like to read:
http://www.arabianbusiness.com/8903
http://www.dubainews.net/story/329836
http://www.gulfnews.com/uaessentials/residentsguide/getting_started/10101552.html
http://archive.gulfnews.com/indepth/labour/Pay_and_conditions/10150408.html
http://cache.search.yahoo-ht2.akadns.net/search/cache?ei=UTF-8&p=minimum+wages+for+maids+uae&fr=slv8-msgr&u=www.gulfnews.com/nation/Society/10194832.html&w=minimum+wages+wage+maids+maid+maid%27s+uae&d=V5HY4i72RA4Y&icp=1&.intl=us
Theme maids: please do not have me started!