The Saudi Arabia Personal Data Protection Law (PDPL): A Brief Overview

Saudi Arabia’s Personal Data Protection Law (PDPL)

The PDPL is Saudi Arabia’s comprehensive legal framework designed to protect personal data and regulate how entities process such information. Personal data under the PDPL includes any information that can be used, either directly or indirectly, to identify an individual. Examples include names, ID numbers, addresses, phone numbers, financial information, and even opinions or inferences about an individual. The law covers not just current residents, but also those handling the personal data of deceased individuals under certain conditions.

The PDPL applies to a wide range of entities, including companies, organizations, and even individuals, both within Saudi Arabia and beyond its borders. Any entity processing the personal data of individuals residing in the Kingdom must comply, regardless of the entity’s physical location.

Key Definitions

• Personal Data: Information that can identify an individual, such as names, phone numbers, email addresses, financial records, photos, or opinions about the individual.
• Sensitive Data: A special category of personal data that includes race, ethnicity, political or religious beliefs, health information, and genetic data.
• Data Controller: An entity that determines the purpose and method for processing personal data.
• Data Processor: An entity that processes personal data on behalf of a data controller.

Application

The PDPL is broad in scope, applying to any individual or organization that processes personal data within Saudi Arabia, regardless of their nationality or legal status. It also extends beyond the Kingdom’s borders, covering foreign entities that process personal data belonging to Saudi Arabian residents.

For example, a foreign-based e-commerce company that collects and processes the personal data of Saudi Arabian customers must comply with the PDPL. This extraterritorial application ensures that individuals’ data is protected even when handled by organizations operating outside the Kingdom.

Exemptions

The law makes some important exemptions. Personal or family use of personal data is not subject to the PDPL, as long as the data subject did not disclose or publish the information themselves.

This means individuals can handle personal data within their family or private circle without needing to comply with the law, provided the information is not publicly available.

Core Requirements

To comply with the PDPL, data controllers and processors must adhere to several key obligations. These include:

1. Informing Individuals Before Data Collection: Data subjects must be informed about why their data is being collected, how it will be used, and whether providing the data is optional or mandatory. This transparency builds trust and ensures that individuals are aware of how their personal information is handled.
2. Obtaining Consent: Consent is a cornerstone of the PDPL. Organizations must obtain explicit consent from individuals before collecting or using their personal data. Consent is particularly important for sending advertising or awareness-raising materials through personal communication channels like email.
3. Providing a Way for Individuals to Exercise Their Rights: The PDPL grants individuals several rights over their personal data, including the right to access, correct, or delete their data. Organizations must provide simple, accessible ways for individuals to exercise these rights, such as through email or mobile applications.
4. Limiting Data Collection: Organizations are only allowed to collect personal data that is directly relevant to their stated purpose. Once the data is no longer needed, it must be securely destroyed.
5. Ensuring Data Security: The PDPL mandates that personal data be kept secure at all times. Data controllers must implement robust security measures to prevent unauthorized access, data breaches, or other threats to personal information.
6. Maintaining Records of Data Processing: Organizations are required to maintain detailed records of their data processing activities. These records should include information such as the categories of personal data collected, the purposes for processing, and whether the data has been transferred outside Saudi Arabia.
7. Conducting Data Protection Impact Assessments (DPIAs): Before engaging in high-risk data processing activities, such as processing sensitive data or using automated decision-making systems, organizations must conduct impact assessments to evaluate potential privacy risks.
8. Appointing a Data Protection Officer (DPO): Certain organizations, particularly those that process large amounts of sensitive data or engage in continuous monitoring of individuals, are required to appoint a DPO to oversee data protection efforts.
9. Maintaining a Privacy Policy: Organizations must publish a privacy policy that outlines their data processing practices, the types of personal data they collect, and how individuals can exercise their rights under the PDPL.

How to Comply

To comply with the PDPL, businesses should take the following steps:

• Step 01. Notify and Obtain Consent
  Ensure individuals are informed about how their data will be used and obtain their explicit consent before collecting personal data. This can be done through clear privacy notices at the point of data collection.
• Step 02. Provide a Mechanism for Data Subject Rights
  Make it easy for individuals to access, correct, or delete their personal data. Businesses should have processes in place to respond to these requests within the 30-day timeframe mandated by the law.
• Step 03. Secure Personal Data
  Implement strong technical and organizational security measures to protect personal data from unauthorized access, loss, or damage. This includes encrypting data and establishing access controls.
• Step 04. Limit Data Collection
  Only collect data that is necessary for the purpose stated and ensure that data is securely destroyed when it is no longer needed.
• Step 05. Appoint a DPO if Necessary
  Appoint a DPO if your organization’s data processing activities involve large-scale processing of sensitive data or continuous monitoring of individuals.
• Step 06. Conduct Data Impact Assessments
  If your organization is processing sensitive data or engaging in high-risk activities, conducting a DPIA is essential to identify potential privacy risks and ensure compliance with the PDPL.
• Step 07. Maintain a Privacy Policy
  Draft a clear and comprehensive privacy policy that outlines how personal data is collected, processed, and stored. This document should also inform individuals about their rights under the PDPL.

Penalties for Non-Compliance

Failure to comply with the PDPL can result in severe penalties, including both administrative fines and criminal penalties. For instance, anyone found to have published or disclosed sensitive personal data with the intent to harm the data subject or for personal gain may face up to two years of imprisonment and fines of up to SAR 3 million (approximately USD 800,000). For other violations, the PDPL allows for fines of up to SAR 5 million, which can be doubled for repeat offenses.

In addition to these financial penalties, businesses that fail to comply with the PDPL risk damaging their reputation and losing the trust of their customers.

Cross-Border Data Transfers

The PDPL also imposes strict regulations on transferring personal data outside of Saudi Arabia. Data controllers are required to ensure that any cross-border transfer of data complies with the law and does not pose a threat to the Kingdom’s national security or vital interests. Transfers to countries with an adequate level of data protection are permitted, but if the destination country does not meet these standards, the data controller must implement additional safeguards, such as standard contractual clauses or binding corporate rules.

If transferring data to a country without adequate protection is necessary, organizations must conduct a transfer risk assessment to ensure that the rights and privacy of data subjects are not compromised.

Wrapping Up

The Saudi Arabia Personal Data Protection Law (PDPL) marks a significant milestone in the Kingdom’s efforts to protect personal data and promote privacy. With its broad scope and stringent requirements, businesses operating in Saudi Arabia—or handling the data of its residents—must take proactive steps to comply with the law. From appointing a Data Protection Officer (DPO) to conducting Data Protection Impact Assessments (DPIAs) and maintaining strong data security practices, compliance with the PDPL requires careful planning and ongoing commitment.

As things continue to evolve, organizations that prioritize data privacy will not only avoid penalties but also build trust with their customers, positioning themselves for success in an increasingly privacy-conscious world.

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