Saudi Arabia Personal Data Protection Law (PDPL): Key Insights

In a world where data is considered a key commodity, it has become more paramount than ever to protect personal information. In appreciation of this, Saudi Arabia recently initiated its Personal Data Protection Law (PDPL) to ensure the privacy and confidentiality of individual data. This paper explores the essential features of PDPL, how it affects organizations, and makes a comparison with the European Union’s General Data Protection Regulation.

Overview of Saudi Arabia’s PDPL

The PDPL was enacted precisely to regulate the processing of personal data in Saudi Arabia. Its main objectives are as follows:

• Ensure privacy of personal data: Protect people’s information from unauthorized use or access.

• Regulate data processing activities: Establish clear guidelines for collecting, storing, and disseminating personal data.

• Avoid data misuse: Establish controls that would discourage activities that could lead to harming people because of data breaches or mishandling.

The law applies to both public and private organizations that process personal data related to individuals who reside in Saudi Arabia. Importantly, it even covers non-Kingdom bodies processing the personal information of individuals in Saudi Arabia, which would place considerable scope on territorial reach.

Definitions — What Matters Most

It is important to understand the definitions used in the PDPL:

• Personal Information: Any information that directly or indirectly identifies a person, such as names, identification numbers, or electronic identifiers.

• Sensitive Personal Information: Facts or data reflecting racial or ethnic origin, political views, religious or philosophical convictions, criminal background, health, or sexual orientation.

Roles of Organizations

Organizations responsible for processing personal data, as stipulated in the PDPL, must discharge the following roles:

1. Legal Foundation of Processing

Data controllers must have a legitimate reason for processing personal data. Valid legal bases include explicit consent from the data subject, contractual necessity, or compliance with a legal obligation.

2. Consent Requirements

Explicit consent from the data subjects is essential. Consent must be:

• Informed: People should know how their information will be used.

• Specific: Consent must be given for every specific purpose of processing.

Records of consent shall be kept for verifications.

3. Data Subject Rights

Several rights are offered to individuals pertaining to their data under the PDPL:

• Right of Access: A person may request a copy of access to his /her data housed with an organization.

• Right to Rectification: People may make a request of rectification with regard to an inaccuracy/incompleteness of information.

• Right to Erasure: In some conditions, people are entitled to apply for data for erasure in certain circumstances.

• Right to Object: The data subject can object to their data processing subject to certain conditions.

Organizations should have procedures to affect these rights and process applications within the stipulated period.

4. Data Protection Officer (DPO)

Organizations performing high risk activities of processing shall appoint a DPO.

Tasks of DPO

• Administrate data protection planning and tool.

• Ensuring compliance with the PDPL.

• As a contact point for the organization and regulatory bodies.

5. Data Breach Notification

In case of a breach of data, organizations are obligated to:

• Notify the regulatory authority promptly.

• Notify the affected persons if the violation is a threat to their rights and freedoms.

• Maintain a record of all data breaches, regardless of the severity.

6. Cross-Border Data Transfers

Exporting personal data from Saudi Arabia is subject to strict conditions:

• They are permitted to only countries having data protection legislation providing equivalent protection.

• Organizations should seek the consent of the Saudi Data & Artificial Intelligence Authority (SDAIA) before data transfer out of the country.

• Where appropriate, the existence of suitable protection, for instance, under Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs), needs to be assured to ensure that data protection can be ensured for the transfer

PDPL versus GDPR: Comparative Analysis

Although both the PDPL and the GDPR are aimed at protecting personal data, there are some differences to be noted:

1. Cross-Border Data Transfers

• GDPR: Allows data transfers to countries with sufficient standards of data protection without requiring advance approval.

• PDPL: Enforces more stringent standards, requiring approval from SDAIA for cross-border data flows even to countries having sufficient protection levels.

2. Legal Ground for Processing

• GDPR: Identifies ‘legitimate interests’ as one of the lawfulness of processing.

• PDPL: Initially didn’t accept ‘legitimate interests’ but now has included in the amended version and doesn’t have applicability in processing sensitive information.

3. Data Breach Notification

• GDPR: Provides for data breaches which should be intimated to the authorities within 72 hours.

• PDPL: Requires notification of data breach but does not provide a time frame for reporting.

Organizational Compliance Strategies

To comply with the PDPL, organizations should:

1. Carry out Data Audits: Identify and document all activities involving the processing of personal data.
2. Formulate Privacy Policies: Develop clear and comprehensive privacy policies that detail data processing activities.
3. Enforce Security Measures: Implement technical and organizational measures to ensure unauthorized access or compromise of personal data.
4. Train Staff: Train employees on data protection principles and company policies.

Consequences of Non-Compliance

The following are consequences of non-adherence to the PDPL:

• Financial Sanctions: Organizations will be fined due to the breach.

• Reputational Harm: Infringements of the PDPL result in reputational damage and lost customer confidence.
• Legal Actions: One can institute legal action due to infringements of their data protection rights.

Conclusion

This will be an important milestone toward more robust data protection and privacy in the Kingdom. Organizations operating in or engaging with Saudi Arabia have a responsibility to understand and comply with the requirements of the PDPL to ensure lawful processing of personal data and maintain trust among the people. Organizations can successfully deal with the complexities of the PDPL with proper data protection practices and keeping on top of evolving regulations.