In September 2021, Saudi Arabia announced its first ever data protection law. The Personal Data Protection Law (PDPL) was implemented by Royal Decree M/19 of 9/2/1443H approving Resolution No. 98 dated 7/2/1443H (14th September 2021). PDPL will regulate the collection, handling, disclosure and use of personal data and includes governance and transparency obligations. It will initially be enforced by the Saudi Arabian Authority for Data and Artificial Intelligence (SDAIA).
PDPL was originally going to come fully into force on 23rd March 2022. However, in November 2022, SDAIA published proposed amendments for public consultation. On 21st March 2023, some of these amendments were passed by the Saudi Council of Ministers. PDPL will now officially come into force on 14th September 2023 and organisations will have till 13th September 2024 to comply. Much of the detail of the new law will be set out in the Executive Regulations which we are still waiting for, although a draft version was issued last year.
The amendments to PDPL introduce several concepts that will align the new law more closely to the EU General Data Protection Regulation (GDPR) and the UK GDPR. These include:
- New Ground for Processing: Like the GDPR, Data Controllers may now rely on “legitimate interests” as a lawful basis to process personal data; this does not apply to sensitive personal data, or processing that contravenes the rights granted under PDPL and its executive regulations.
- Easier International Transfers: Like other data protection regimes, PDPL imposes limitations on the international transfer of personal data outside of the KSA. The strict prohibition on transfers outside Saudi Arabia has now been amended. Furthermore they no longer require approval from SDAIA. Data Controllers will need a specific purpose to transfer data outside the Kingdom and transfers appear to be limited to territories that SDAIA determines as having an appropriate level of protection for personal data, which will be further clarified once they issue evaluation criteria for this purpose. The pending executive regulations should set out exemptions from this condition.
- Removal of Controller Registration Requirements: The original law required Data Controllers to register on an electronic portal that would form a national record. This provision has now been removed. However, SDAIA has the mandate to license auditors and accreditation entities and create a national register if it determines that it would be an appropriate tool and mechanism for monitoring the compliance of controllers.
- Data Breach Notification Relaxed: Notifications of personal data breaches to SDAIA are no longer required “immediately.” However, controllers must now notify data subjects when a breach threatens personal data or contravenes the data subject’s rights or interests. The pending regulations are expected to provide additional specificity, such as particular dates for notifying data breaches and threshold requirements.
- Criminal Offences Reduced: The penalties for breaching PDPL will be a warning or a fine of up to SAR 5,000,000 (USD 1,333,000) that may be doubled for repeat offences. Criminal sanctions for violating the PDPL’s data transfer restrictions have been removed. There now remains only one criminal offence in relation to the disclosure or publication of sensitive personal data in violation of the law.
Action Plan for Compliance
Businesses established in Saudi Arabia, as well as those processing Saudi citizens’ personal data anywhere in the world, have sixteen months to prepare for PDPL. Considering that those covered by GDPR had four years, this is not a long time. Now is the time to put systems and processes in place to ensure compliance. Failure to do so will not just lead to enforcement action but also reputational damage.
The following should be part of an action plan for compliance:
- Raising awareness about PDPL at all levels. Our GDPR elearning course can be tailored for frontline staff.
- Carrying out a data audit and reviewing how records management and information risk is addressed.
- Reviewing information security policies and procedures in the light of the new more stringent security obligations particularly breach notification.
- Revising privacy policies in the light of the more prescriptive transparency requirements.
- Writing policies and procedures to deal with new and revised Data Subject rights such as Data Portability and Subject Access.
- Appointing and training a Data Protection Officer.
The new KSA data protection law is an important development in Middle East privacy law alongside the passing of the new UAE Federal DP law.
These laws, being closely aligned with the EU General Data Protection Regulation (GDPR) and the UK GDPR, open up exciting job opportunities for UK and EU Data Protection professionals. A quick scan of jobs sites shows a growing number of prospects.
Act Now in the Middle East
Act Now Training can help your businesses prepare for PDPL. We have delivered training extensively in the Middle East to a wide range of delegates including representatives of the telecommunications, legal and technology sectors. Check out our UAE privacy programme. We can also deliver customised in house training both remotely and face to face.
Please get in touch to discuss your training or consultancy needs.
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