Navigating Saudi Arabia PDPL: Checklist and Best Practices

KSA’s Personal Data Protection Law (PDPL) is now officially in effect, ushering in a new era of data privacy regulations in the region. What does this new law mean for your organization?

This pioneering legislation requires organizations to adapt their data handling practices to meet stringent new standards. Hence, familiarizing yourself with it and implementing the necessary changes to protect both your organization and the personal data you handle is mandatory, and personal data must be processed only with explicit consent from individuals.

In this blog post, we will explore the critical aspects of the PDPL and offer practical advice on navigating this regulatory shift. We will explore best practices for compliance to align your data management practices with the new requirements, share concrete steps to ensure your organization meets the compliance deadline, and explain the penalties and consequences you might face for non-compliance and how to mitigate privacy risks.

How To Prepare?

Our team has gathered and summarized the following essential steps to outline key actions for achieving compliance with the Personal Data Protection Law (PDPL):

●     Appoint a Qualified Data Privacy Officer: Designate a qualified officer to oversee compliance with the PDPL and engage customers and employees to ensure comprehensive data privacy adherence.

●     Maintain Records and Ensure Transparency: Keep a personal data and processing activities records, and ensure transparency by obtaining consent in compliance with the PDPL.

●     Handle Data Subject Requests: Respond to data subject requests promptly and document actions taken.

●     Implement Effective Data Protection Measures: Adopt organizational and technical measures for data protection, ensuring that third-party data processors meet requirements.

●     Manage Data Breaches: Notify competent authorities and affected data subjects in the event of a data breach, and establish procedures for managing breaches.

●     Facilitate Cross-Border Data Transfers: Understand that the PDPL permits the transfer of personal data outside Saudi Arabia under specific purposes and conditions.

●     Conduct a Data Protection Impact Assessment (DPIA): To identify and mitigate privacy risks.

Key Considerations and Concepts

All organizations, whether public or private, operating within Saudi Arabia, as well as those based outside the country but processing personal data of Saudi residents, must ensure they comply with the PDPL and regulations issued under the law.

From this point forward, controlling entities will bear the ultimate responsibility for adhering to the PDPL, including ensuring that processing entities under their authority comply with all regulations. They must also report any personal data breaches to the relevant higher authorities. While processing entities have less independence when handling personal data, they still have legal duties to follow the terms outlined by the controlling entity (i.e., ensure proper security measures, promptly report data breaches, and ensure that data transfers, especially cross-border comply with the PDPL's stringent requirements.

Particularly sensitive data, such as health, credit, or biometric information, as well as religious, political, or intellectual beliefs, is especially vulnerable to misuse and could cause significant harm if leaked.

The Saudi Data and Artificial Intelligence Authority (“SDAIA”), as mandated by the PDPL, intends to create a national register of controllers and charge an annual fee for the registration of private entities.

Why Is Investing in Staff Training Crucial?

A well-trained workforce is the cornerstone of any successful data protection strategy. Investing in staff education is not just a compliance requirement but a proactive measure to build a culture of privacy within your organization. When employees know data protection policies and understand their roles in safeguarding personal information, your organization is better positioned to uphold data privacy standards and respond adeptly to potential breaches.

Key Benefits of Comprehensive Staff Training:

1. Enhanced Compliance: Ensure that all team members are aware of and adhere to the PDPL regulations, reducing the risk of inadvertent non-compliance.
2. Improved Incident Response: Equips staff with the skills to recognize and report potential data breaches promptly, minimizing the     impact and facilitating quicker recovery.
3. Strengthened Privacy Culture: Fosters a workplace environment where data privacy is ingrained in daily practices and organizational values.
4. Reduced Risk of Breaches: Regular training helps prevent common errors and security lapses that could lead to data breaches.

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Penalties and Implications Due to Non-Compliance

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The Personal Data Protection Law (PDPL)imposes significant penalties for non-compliance and data breaches. Violation scan result in fines of up to SAR 5 million (approximately USD 1.3 million) and imprisonment for up to 2 years. In cases of repeated breaches, fines may be doubled. Additionally, organizations may face substantial revenue losses, litigation expenses, remediation costs, and increased regulatory scrutiny.

What Is on the Horizon for PDPL in Saudi Arabia?

The Kingdom of Saudi Arabia is advancing towards its Vision 2030 goals by leveraging data and AI to drive digital transformation. The country is not only modernizing its public and private sectors with smart city initiatives and tech start-ups but also enhancing the quality of life through streamlined processes and reduced bureaucracy. Key developments include the establishment of regulatory bodies like SDAIA and NTP to ensure responsible tech integration. Saudi Arabia is focusing on aligning its data protection and AI practices with international standards, balancing innovation with robust legal frameworks to safeguard personal data and foster responsible AI use.

AIGC's Role in PDPL Compliance

In today’s data-driven landscape, Aldar International for Governance Consultancy (AIGC) believes that ensuring compliance with the Personal Data Protection Law (PDPL) is not only about following regulations; but also about building trust between clients and stakeholders. This proactive approach to data protection reflects AIGC’s commitment to safeguarding personal information and respecting individual rights. By implementing robust PDPL requirements, AIGC helps organizations avoid costly penalties. Ultimately, strong data privacy practices not only protect individual rights but also enhance organizational reputation, encouraging customer loyalty and confidence in their commitment to data security.