Ensuring Compliance with Saudi Arabia’s Personal Data Protection Law

 The Saudi Personal Data Protection Law (PDPL) came into force on September 14, 2023, offering businesses a one-year transition period to comply with its provisions. With its broad extraterritorial scope, companies worldwide must recognize its relevance and take appropriate action to ensure compliance.



The PDPL's Regulatory Framework

The PDPL, introduced by Royal Decree M/19 on September 16, 2021, aims to safeguard personal data within Saudi Arabia. It applies not only to businesses operating within the Kingdom but also to those that handle the personal data of Saudi residents, regardless of their location. To fully understand the law's reach and compliance requirements, businesses must familiarize themselves with the regulatory guidelines established by the Saudi Data & Artificial Intelligence Authority (SDAIA).

Personal Data and Sensitive Personal Data

Under the PDPL, personal data refers to any information that can identify an individual, such as names, contact details, and identification numbers. Sensitive personal data, which includes health, genetic, and biometric information, is subject to stricter processing regulations. For example, sensitive data cannot be used for marketing under the law.

Key Principles of the PDPL

The PDPL is based on key principles designed to protect individual privacy and ensure responsible data management:

  • Lawfulness and Transparency: Data processing must be done lawfully and transparently, with clear communication to data subjects about how their data will be used.
  • Purpose Limitation: Personal data should only be processed for the specific purposes it was collected for.
  • Data Minimization: Only the data necessary for business operations should be collected and processed.
  • Storage Limitation: Personal data should not be retained for longer than necessary.
  • Confidentiality: Measures must be implemented to secure and protect the confidentiality of personal data.

Compliance Measures

Businesses must take several organizational, technical, and administrative actions to comply with the PDPL. Key steps include:

  • Registering as a Data Controller: Companies must register with the appropriate authorities as a data controller if applicable.
  • Appointing a Data Protection Officer (DPO): Certain businesses must designate a DPO to oversee their data protection practices.
  • Privacy Policy: A clear and comprehensive privacy policy must be drafted to inform individuals about how their data is processed and protected.
  • Data Impact Assessments: Businesses must assess the risks associated with their data processing activities, particularly when transferring data internationally or handling sensitive data.
  • Data Processing Agreements: Contracts must be established with third-party data processors to ensure their compliance with the PDPL.
  • Cross-Border Data Transfers: Personal data transferred outside Saudi Arabia must comply with the PDPL's protection measures.

Legal Grounds for Data Processing

The PDPL provides several legal bases for processing personal data, including:

  • Consent: Obtaining explicit consent from individuals for processing their data.
  • Contractual Necessity: Processing data necessary to fulfill a contract with the data subject.
  • Legal Obligation: Processing data to meet legal requirements.
  • Public Interest: Processing data for security or judicial purposes.
  • Legitimate Interests: Processing data based on legitimate business interests, excluding sensitive data.

Recent Amendments and Regulations

The Saudi PDPL has been updated with new regulations that provide further clarification:

  • Executive Regulations: These offer specific guidance on DPO appointments, handling data subject requests, and conducting data impact assessments.
  • Data Transfer Regulations: Effective September 1, 2024, these regulations allow cross-border data transfers to jurisdictions with adequate data protection or where proper safeguards, such as Standard Contractual Clauses (SCCs) and Binding Corporate Rules (BCRs), are in place.
  • DPO Appointment Rules: New rules specify when a DPO is required, such as when large-scale personal data processing occurs or involves sensitive data.

Appointing a Data Protection Officer (DPO)

A DPO must be appointed when:

  • A business processes personal data on a large scale.
  • The core activities involve regular monitoring of individuals.
  • The business handles sensitive personal data.

The DPO must be qualified and knowledgeable in data protection and risk management. Once appointed, the DPO's details must be submitted to the National Data Governance Platform.

Registration on the National Data Governance Platform

Businesses must register as data controllers on the National Data Governance Platform if they are public entities, engage in personal data processing as a core activity, or handle sensitive data. This registration is mandatory for many businesses to remain compliant with the PDPL.

Conclusion

The PDPL represents a significant step forward in data protection in Saudi Arabia. By understanding its core principles and implementing necessary compliance measures, businesses can safeguard personal data, build trust with consumers, and avoid legal challenges. Now is the time to ensure your business is ready for full compliance with the Saudi PDPL.

Download Saudi PDPL PDF Here

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