"I worry a bit when he talks about his sponsor being different than his employer." The company is not local and the sponsor of the company would then be his sponsor.

Where is your passport? If your employer has it, go to NHRC and lodge a complaint. If a work visa has been stamped in your passport, you need not worry about being illegal, regardless of whether you have been give an ID card or not.

http://www.nhrc-qa.org/en/complaintform.aspx