Saudi Arabia Launches Public Consultation on Proposed Amendments to Personal Data Protection Law

Dec 5, 2022

Reading Time : 3 min

On November 20, 2022, the Saudi Data and Artificial Intelligence Authority (SDAIA) launched a public consultation (which is open until December 20, 2022) on its proposed amendments to the Personal Data Protection Law (PDPL). Previously, on September 24, 2021, the Kingdom of Saudi Arabia published the long-anticipated PDPL pursuant to Royal Decree M/19 of 9/2/1443H, constituting the country’s first comprehensive national data protection legislation; although the PDPL was due to become effective on March 23, 2022, on March 22, 2022, SDAIA announced that it had decided to postpone the full enforcement of the PDPL to March 17, 2023, and, in collaboration with the National Data Management Office, further issued the Draft Executive Regulations supplementing the PDPL. The issuance of these draft regulations on March 10, 2022, was followed by a period of inactivity (and it is likely such regulations will be updated once the amendments to the PDPL are finalized) such that the launch of the public consultation now revives focus on the PDPL. The proposed amendments (the “Amendments”) contain significant changes to the prior version of the PDPL, including:

(i) Data Transfers: In a relaxation of the current narrow data transfer provisions, the Amendments introduce additional grounds on which personal data may be lawfully transferred outside of Saudi Arabia (including where the transfer is carried out in performance of an obligation of a data subject and where the jurisdiction to which the data is transferred ensures appropriate protection of personal data, the protection of data subject rights and has a sufficient supervisory authority such that the standard of protection is not less than the standard afforded under the PDPL and its implementing regulations) and further remove the potential penalty of imprisonment for non-compliance with the data transfer restrictions.

(ii) Lawful Interests: The Amendments incorporate the novel concept of “lawful interest” as (a) a legal basis for processing non-sensitive personal data; (b) a basis on which a data controller may collect non-sensitive personal data from a person other than a data subject or process such data for a purpose other than that for which it was collected (i.e., if the collection/processing is necessary to achieve the lawful interests of the controller or another party, without prejudice to the rights of the data subject and in accordance with the provisions of the implementing regulations); and (c) an exception to the prima facie prohibition on data controller’s disclosing personal data (i.e., disclosure of non-sensitive personal data by the data controller is permissible if it is necessary to achieve the lawful interests of the data controller or another party, without prejudice to the rights of the data subject and in accordance with the provisions of the implementing regulations).

(iii) Data Portability: The rights of data subjects have been extended to include the right to data portability (enabling data subjects to obtain their personal data in a clear, legible format and to request the transfer of their personal data to another controller where technically possible).

(iv) Data Breach Notification: The Amendments establish a risk threshold for data breach notifications, requiring the data controller to carry out the requisite notification where the leak, damage or access to personal data is capable of causing harm to the data subject or is detrimental to their rights or interests (although it is presently unclear whether such a standard applies in respect of notifications to both the Competent Authority and data subjects).

(v) Direct Marketing: The Amendments provide for the processing of personal data for marketing purposes on an opt-out basis (previously permitting such processing if the data was collected directly from the data subject who consented to the processing for marketing purposes) and further permit the processing of sensitive data for marketing purposes in certain prescribed circumstances (whereas this was previously prohibited outright).

(vi) Registration and Local Representative Requirements: Although the Amendments further clarify the powers of the Competent Authority, the Amendments remove certain provisions of the former version of the PDPL, including the obligation on controllers to register with the Competent Authority and for organizations outside of Saudi Arabia to appoint a local representative in Saudi Arabia.

The Amendments, particularly with regard to the broader data transfer provisions and lawful interests basis, are significant developments to the previously published PDPL. If the Amendments are finalized, the amended PDPL will enter into force 180 days after publication in the Saudi Official Gazette, thereby likely postponing the existing March 2023 enforcement deadline. More details are expected in the implementing regulations supplementing the PDPL.

We continue to monitor developments in this area.

Share This Insight

Previous Entries

Data Dive

October 17, 2024

During the course of any lending transaction, lenders will conduct a due diligence review of the borrower, including reviewing any relevant “know-your-customer” information. In the context of a fund finance transaction, this due diligence is likely to include a review of fund organizational documents, subscription agreements and side letters, if any, from the fund’s investors. Providing this information to lenders is an essential and practical aspect of incurring any fund-level financing, and is often expressly permitted by a fund’s governing documentation. Especially in the context of a subscription credit facility, where investor commitments and the related right to collect capital contributions are the primary source of repayment for the loan, a lender will need to see information that could potentially include sensitive or confidential information about investors.

...

Read More

Data Dive

September 17, 2024

Following the publication of the European Union’s Artificial Intelligence Act (AI Act or Act) on 12 July 2024, there are now a series of steps that various EU bodies need to take towards implementation. One of the first key steps is in relation to the establishment of codes of practice to “contribute to the proper application” of the AI Act.

...

Read More

Data Dive

August 6, 2024

On July 30, 2024, the Senate passed the Kids Online Safety and Privacy Act (S. 2073) via an overwhelmingly bipartisan vote of 91-3 shortly before departing for the August recess.

...

Read More

Data Dive

July 18, 2024

On 12 July 2024, the European Union Artificial Intelligence Act (AI Act or Act) was published in the Official Journal of the European Union (EU), marking the final step in the AI Act’s legislative journey. Its publication triggers the timeline for the entry into force of the myriad obligations under the AI Act, along with the deadlines we set out below. The requirement to ensure a sufficient level of AI literacy of staff dealing with the operation and use of AI systems will, for example, apply to all providers and deployers on 2 February 2025.

...

Read More

Data Dive

July 18, 2024

On June 18, 2024, the United States Securities and Exchange Commission (SEC) announced a settlement with R.R. Donnelley & Sons Company (RRD) for alleged internal control and disclosure failures following a ransomware attack in 2021. Without admitting or denying the SEC’s findings, the business communications and marketing services provider agreed to pay a civil penalty of over $2.1 million to settle charges alleging violations of Section 13(b)(2)(B) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rule 13a-15(a).1

...

Read More

Data Dive

June 11, 2024

In May, the National Institute of Standards and Technology (NIST) issued updated recommendations for security controls for controlled unclassified information (CUI) that is processed, stored or transmitted by nonfederal organizations using nonfederal systems, (NIST Special Publication 800-171 (SP 800-171), Revision 3). These security requirements are “intended for use by federal agencies in contractual vehicles or other agreements that are established between those agencies and nonfederal organizations.”1 While these new controls are only applicable to nonfederal entities that agree to comply with the new issuance, Revision 3 signals the next phase of expected security for government contractors.

...

Read More

Data Dive

May 31, 2024

On May 21, 2024, the European Union finalized the adoption of the groundbreaking EU Artificial Intelligence Act, a comprehensive and sector-agnostic legislation that extends globally. This 420-page Act aims to regulate the deployment and development of AI systems, categorizing them into high-risk and low-risk, and even banning certain types of AI. The Act emphasizes trust, transparency, and accountability in AI usage, promoting the safe integration of AI technologies. This legislation sets a potential global benchmark for AI regulation, although its complexity may pose interpretative and implementation challenges for stakeholders. We set out the key provisions below.

...

Read More

Data Dive

May 30, 2024

On May 17, 2024, Colorado Governor Jared Polis signed into law S.B. 205, a pioneering piece of legislation aimed at regulating high-risk AI systems. This new law, set to take effect on February 1, 2026, introduces stringent requirements for AI developers and deployers, focusing on risk management and the prevention of algorithmic discrimination. This legislation marks a significant step in state-level AI regulation, potentially setting a precedent similar to the impact of GDPR on privacy laws.

...

Read More

© 2024 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.