The Saudi Arabia data Protection Law is one of the significant regulatory changes any business company targeting the Kingdom of Saudi Arabia might undergo shortly. As a matter of fact, as of September 14, 2024, the law becomes applicable. The personal data protection law will be strictly binding with obligations of compliance, and businesses failing to meet the requirements shall face serious exposure to consequences. The NDMO will, therefore, expect companies to have an efficient data management and data protection plan.
What is PDPL (Personal Data Protection Law)?
The PDPL prescribes strict directions to companies on the methods of gathering, storing, and processing personal data. Its core foundation is data minimization, whereby a company gathers only the amount of data needed to carry out the purpose of collection, while explicit consent is necessary for any form of data collection. As such, an individual is assured of their right to access, correction, and erasure, and if a breach occurs, the reporting obligation lies on the company within a stipulated period.
What are the Key Requirements of the PDPL?
Data management on behalf of the company to comply with the Saudi PDPL shall be an all-inclusive aspect; some of the main requirements include:
Limitations on the Collection of Data: Personal data can be collected only for specific purposes that are reasonable.
Minimization of Data: Only personal data that is necessary for specific purposes should be collected.
Rights on Personal Data of the Data Subjects: These rights lie with the respective data subjects concerning access, correction, and deletion of personal data.
Requirement for Consent: Explicit consent is required before collecting or processing any kind of personal data.
Data Breach Notification: The firms are required to notify about their data breach incidents within a particular time scale.
Consequences for Non-Compliance with Saudi PDPL:
Suspension of Business Operations
Regulatory authorities have the power to suspend or revoke the licenses of companies that do not adhere to the PDPL guidelines, potentially halting their operations in the Kingdom.
Reputational Damage
Non-compliance can lead to significant reputational harm, causing a loss of customer trust, reduced business opportunities, and damage to brand equity, especially for organizations that handle sensitive data.
Fines and Penalties
Companies that fail to comply with PDPL can face hefty fines of up to 5 million SAR (approx. 1.3 million USD) for serious violations, such as unauthorized data processing or breaches of data subject rights.
Criminal Liability
Severe breaches, such as sharing sensitive personal data without consent or intentional misuse, can lead to criminal charges, including imprisonment of responsible individuals for up to two years.
Restricted Access to Government Contracts
Companies that fail to comply may become ineligible for lucrative government contracts and projects, limiting their growth potential in Saudi Arabia’s burgeoning economy.
Why Compliance is Important for your Business?
In case the companies fail to comply with the Personal Information Protection Act, they may face severe business consequences in the form of heavy fines, damage to reputation, and even disruption in the operation. Data must be protected by businesses in order to avoid these risks and win the trust of their consumers.
Readiness for PDPL
Companies preparing for compliance should:
Devise a Data Governance Policy: you must draft a policy on how to collect, process, and store information in the safest way possible.
Carry out data audit: What personal data do you have? its management
Alter Privacy Policy: Framing your policies according to the demands of PDPL and communicating that to your customers with transparency.
How can Agira help you comply with Saudi Arabia’s PDPL?
Agira will professionally help you build a thorough framework for data management and data governance so that compliance with the PDPL is implemented. Here, Agira would complete each step during the development and implementation of data privacy measures so that your business doesn’t miss one single step in embracing new rules and regulations.
Conclusion
Now is the time for Saudi businesses to take action with the positive Saudi PDPL and stay compliant. Agira will take you through the maze of new regulations and provide protection for your company against known risks. Take action now and start preparing today. In this shifting sand of data protection, your business’s future can never be more secure than it is at this juncture.
