Overview of Saudi Arabia’s Personal Data Protection Law

In today’s data-driven world, personal data has become an invaluable asset. This vast trove of data also raises concerns about privacy and security, thereby requiring strong legal frameworks to protect the rights of individuals. Recognizing the importance of data protection, Saudi Arabia enacted the Personal Data Protection Law (PDPL), a landmark law that protects the privacy of individuals while encouraging responsible data processing practices.

Saudi Arabia’s journey towards comprehensive data protection began with the introduction of the Electronic Commerce Law in 2007, which included data privacy provisions. In 2017, Saudi Arabia strengthened its data protection framework by promulgating the Cyber Security Law. It was the enactment of the PDPL in 2021 that marked a significant milestone in Saudi Arabia’s data protection stance.

Understanding the Scope and Application of the PDPL

Defining Personal Data under the PDPL

The PDPL defines personal data as any information relating to an identified or identifiable natural person, including their name, identification number, location data, online identifiers and ethnic origin. This broad definition encompasses a wide range of personal information, all of which are guaranteed comprehensive protection under the law.

Territorial Scope of PDP

The PDPL applies to the processing of personal data of individuals within the Kingdom of Saudi Arabia, whether the processing is carried out by a data controller located inside or outside the Kingdom. This outsourcing application ensures that the privacy of Saudi residents is protected even when their data is processed by foreign companies.

Exceptions to the Application of PDPL

The PDPL excludes certain categories of personal data from its scope, including data processed for personal or family purposes, data processed by judicial authorities in the exercise of their judicial functions, and data processed for national security or law enforcement purposes. These exceptions reflect the need to balance individual privacy rights with other legitimate interests.

Fundamental Principles of Data Handling under the PDPL

The PDPL includes fundamental principles that govern the collection, processing and storage of personal data. These principles emphasize transparency, purpose limitations, data minimization, accuracy, storage limitations, integrity, privacy and accountability. Data controllers who determine the purposes and means of data processing are obliged to comply with the principles that personal data is handled with due care and respect for personal privacy.

Transparency and Purpose Limitations

Data controllers must be transparent about their data processing activities. Provides individuals with clear information about the purposes for which their personal data is being collected, used and disclosed. In addition, data may only be processed for specific and legitimate purposes.

Data Minimization and Accuracy

Data controllers must collect and process personal data necessary for the specified purpose. They must ensure that personal data is accurate, up-to-date and relevant.

Storage Limitations, Integrity, and Privacy

Personal data must be stored for a limited period, proportionate to the purpose for which it was collected and processed. Data controllers must put in place appropriate technical and organizational measures to protect personal data against unauthorized or unlawful processing, accidental loss, destruction or damage.

Accountability and Lawfulness of Data Processing

Data controllers must be able to demonstrate compliance with the principles of the PDPL. They must maintain records of their processing activities and make them available to the Saudi Data and Artificial Intelligence Authority (SDAIA) upon request. Data processing must be lawful and data controllers must have a valid legal basis for processing personal data.

Empowering Individuals with Control over Their Personal Data

The PDPL empowers individuals to have greater control over their personal data, shifting the balance of power towards individuals and ensuring that they have a say in how their data is collected, used and disclosed.

Right of access and rectification

Individuals have the right to free access to their personal data held by data controllers. They may request that inaccurate or incomplete personal information be corrected.

Right to erasure and restriction of processing

Individuals may request the erasure of their personal data if the purpose for which the data was collected is no longer necessary. They can request that the processing of their data be restricted, which means that the data can only be used for certain limited purposes

Right to object to data processing

Individuals have the right to object to the processing of their personal data for direct marketing purposes or for legitimate interests that override the individual’s interests.

Right to data portability

Individuals have the right to receive their personal data in a structured, commonly used, and machine-readable format and to transmit that data to another controller without hindrance.

Right to complain

Individuals have the right to complain to the SDAIA if they believe their personal data is being processed in breach of the PDPL. The SDAIA has the power to investigate complaints and take effective action against data controllers who do not comply with the law.

Obligations of Data Controllers under the PDPL

Data controllers, who determine the purposes and means of data processing, bear primary responsibility for ensuring compliance with the PDPL. They must implement appropriate technical and organizational measures to protect personal data, conduct data protection impact assessments, appoint a data protection officer (DPO) if necessary, maintain records of processing activities and ensure data protection and breach notification.

Implementation of appropriate technical and organizational measures

Data controllers must put in place appropriate technical and organizational measures to protect personal data against unauthorized or unlawful processing, accidental loss, destruction or damage. These measures must be proportionate to the risks posed by the processing and nature

Cross-Border Data Transfers under the PDPL

The PDPL regulates the transfer of personal data outside of Saudi Arabia, ensuring that personal data is protected even when it is transferred to third countries that may not have equivalent data protection laws.

Principles governing cross-border data transfers

Data controllers must ensure that cross-border transfers of personal data comply with the following principles:

Lawfulness: The transfer must be based on a legal basis, such as consent, a requirement for the performance of a contract, or compliance with a legal obligation.
Transparency: Individuals must be informed about cross-border transfers of their data.
Security: Appropriate security measures must be in place to protect personal data during transfer.

Adequacy decisions for third countries

If the third country to which the personal data is being transferred is deemed to provide an adequate level of protection for the personal data, the transfer may proceed without additional protection. SDAIA maintains a list of countries that have been granted adequacy decisions.

Appropriate security measures for data transfer

For transfers to third countries that have not been given an adequacy decision, data controllers must implement appropriate safeguards to ensure that personal data is protected. These safeguards may include:

Binding Corporate Rules (BCRs): BCRs are internal policies and procedures that govern the transfer of personal information within a multinational organization.
Standard Contractual Clauses (SCCs): SCCs are contractual agreements between data controllers and data processors that establish obligations to protect personal data.

Data Security and Breach Notification

Data controllers must comply with the data protection requirements of the PDPL, including implementing appropriate technical and organizational measures to protect personal data and handling data breach notifications in the event of a security incident.

Real-time data transfer

PDPL’s principles for cross-border data transfer are equally applicable to real-time data transfer. Data controllers must ensure that appropriate safeguards are in place to protect the real-time transfer of personal data.

Enforcement and Penalties under the PDPL

PDPL establishes a strong enforcement framework to ensure compliance with the law and prevent violations. The Saudi Data and Artificial Intelligence Authority (SDAIA) is responsible for implementing the PDPL. Has various powers to investigate, approve and correct non-compliance.

Introduction to Saudi Data and Artificial Intelligence Authority (SDAIA)

SDAIA acts as the guardian of data privacy in Saudi Arabia, tasked with upholding the principles of the PDPL and protecting the rights of individuals. Which includes:

Investigation of Complaints: SDAIA diligently examines complaints filed by individuals or organizations alleging violation of PDPL, thoroughly investigates the circumstances and prescribes appropriate action.
Issuance of warnings and notices: Where data controllers demonstrate non-compliance, the SDAIA may issue strict warnings or notices highlighting specific violations of the law and requiring immediate corrective action.
Imposition of Penalties: For more serious violations, the SDAIA has the power to impose fines of up to SAR 5 million (approximately USD 1.3 million), which acts as a strong deterrent against willful disregard for the provisions of the PDPL.

Investigative powers and administrative sanctions

Access to premises: The SDAIA has the power to access the premises of data controllers to inspect their data processing activities by directly assessing their compliance with the principles of the PDPL.
Seizure of documents: When deemed necessary, the SDAIA may seize documents or other material which may be relevant to the investigation, to gather evidence important to support its findings.
Issuance of Summons: The SDAIA can compel individuals and organizations to provide information or attend hearings, ensuring that all relevant parties are heard and their views are considered. Additionally, the SDAIA may impose administrative sanctions to address non-compliance, ranging from warnings to fines, depending on the severity of the violation:
Warning: For minor violations, the SDAIA may issue a warning to a data controller, signaling the potential consequences of continued non-compliance.

Penalties for non-compliance

The PDPL sets substantial penalties for non-compliance, serving as a strong incentive for data controllers to comply with its provisions. These penalties include:

Financial Penalties: Data controllers who fail to comply with the requirements of the PDPL may be fined up to SAR 5 million (approximately USD 1.3 million).
Administrative Sanctions: The SDAIA may impose administrative sanctions, such as warnings and notices of non-compliance, to address non-compliant practices and promote compliance with the PDPL.
Reputational Damage: Non-compliance with the PDPL can tarnish a data controller’s reputation, erode trust among consumers and hamper its ability to effectively conduct business.

Real-time enforcement

SDAIA’s enforcement capabilities extend to real-time data processing, ensuring that individuals’ privacy is protected even in a dynamic and fast-paced digital environment. This real-time enforcement capability is crucial in dealing with data breaches and other time-sensitive situations.

Impact of the PDPL on Businesses and Organizations

Saudi Arabia’s Personal Data Protection Law (PDPL) has a significant impact on businesses and organizations that operate.

Data governance and privacy management strategies

Businesses need to establish effective data governance and privacy management strategies to ensure compliance with the PDPL. This includes developing and implementing data policies and procedures, appointing a Data Protection Officer (DPO) and conducting Data Protection Impact Assessments (DPIAs).

Facilitation of compliance with PDPL

Complying with the PDPL offers several benefits to businesses, including:

Reducing the risk of data breaches and reputational damage: By implementing appropriate security measures, businesses can reduce the risk of data breaches and protect their reputation.
Increased trust from customers: Complying with the PDPL can demonstrate to customers that a business is committed to protecting their privacy, which can increase trust and loyalty.
Enhanced Legal Protection: Complying with the PDPL can help businesses avoid the legal and regulatory risks associated with non-compliance.
Improved data quality: By applying principles of data minimization and accuracy, businesses can improve the quality of their data, which can lead to better decision-making.

Impact on specific sectors

PDPL has a particularly significant impact on certain sectors, such as:

Healthcare: Healthcare organizations must manage sensitive personal data, such as medical records. PDPL intends to implement strict security measures and obtain explicit consent from individuals before collecting and processing their health information.
Finance: Financial institutions collect and process large amounts of financial data. PDPL intends to implement appropriate security measures to protect against unauthorized access to financial information.
Technology: Technology companies often collect and process large amounts of personal data through their products and services. PDPL intends to be transparent about its data collection practices and give individuals control over their data.

The PDPL as a Catalyst for Data Protection in Saudi Arabia

Saudi Arabia’s Personal Data Protection Law (PDPL) marks a watershed moment in the Kingdom’s data protection landscape. which acts as a catalyst for building trust, promoting responsible data processing practices and advancing data protection in the digital age.

Building trust and confidence in the digital ecosystem

PDPL instills trust and confidence in the digital ecosystem by empowering individuals to have control over their personal data and ensuring that their right to privacy is protected. This increased trust is crucial to encourage individuals to engage in digital activities and promote economic growth.

Promotion of responsible data processing practices

The PDPL establishes clear and comprehensive guidelines for data processing. Obliges businesses and organizations to manage personal data with transparency, purpose limitations, data minimization, accuracy, storage limitations, integrity, privacy and accountability.

Advances in data protection in the state

PDPL’s alignment with international data protection standards such as the EU General Data Protection Regulation (GDPR) positions Saudi Arabia as a leader in data protection and promotes harmonization of data protection laws across borders.

The PDPL serves as a catalyst for data protection in Saudi Arabia, building trust, promoting responsible data processing practices, advancing data protection in the Kingdom and addressing evolving data protection challenges. By empowering individuals and establishing strong data protection policies, PDPL paves the way for a secure and trusted digital future for Saudi Arabia.