Saudi Arabia's PDPL

Saudi Arabia's Personal Data Protection Law (PDPL), enacted in 2021, marks a significant step in regulating the processing of personal data in the Kingdom. The PDPL aims to protect individuals' privacy by setting out clear rules on how personal data can be collected, processed, stored, and shared. As more businesses undergo digital transformations, the PDPL holds companies accountable for safeguarding data and ensuring transparency in their handling of personal information.

One of the core elements of this law is the focus on how companies manage data exchanges, particularly with external entities or data subprocessors. A key requirement is that businesses must disclose who they are sharing data with and for what purpose. This article explores the PDPL's specific mandates around data subprocessors and outlines why maintaining a comprehensive and accurate catalog of third-party interactions is essential for compliance.

What is the PDPL?

The Saudi PDPL is part of the Kingdom's broader Vision 2030 strategy, which seeks to establish a data-driven economy while maintaining the highest standards of data privacy. Overseen by the Saudi Data and Artificial Intelligence Authority (SDAIA), the PDPL applies to any organization that processes personal data, whether within Saudi Arabia or abroad, as long as the data belongs to Saudi residents.

The PDPL introduces rights for individuals to control how their data is used, including the right to access, rectify, and delete their personal information. Consent is central to the law, as businesses must obtain clear consent from data subjects before processing their information. Companies must also be transparent in their practices, particularly when it comes to disclosing who they share data with.

The Requirement to Disclose Data Subprocessors

Under the PDPL, one of the significant obligations for companies is the need to disclose their data subprocessors—third-party entities that process data on behalf of a company. Whether it’s cloud storage providers, analytics firms, or customer support platforms, companies must ensure they have explicit agreements with their subprocessors to protect personal data. The PDPL requires organizations to maintain clear records of who these subprocessors are and ensure that data protection practices extend to third parties.

In addition, the PDPL mandates that organizations be able to provide details about the data being shared with these subprocessors, including:

• The specific types of personal data involved.
• The purpose for which the data is shared.
• The location where the data is stored or processed, which becomes especially important in cases where cross-border data transfers occur.

Building the Case for a Data Interaction Catalog

To comply with the PDPL, it is not enough for companies to simply know who their subprocessors are. They must actively maintain a comprehensive catalog of all external interactions, detailing the types of data passed to each third party. This catalog should serve as a living document that is continuously updated to reflect changes in data exchanges.

An accurate and up-to-date catalog must cover the following:

1. List of Data Subprocessors: Companies need to maintain a list of all third parties they share data with, whether inside or outside Saudi Arabia.
2. Types of Data Exchanged: It's essential to specify what kinds of personal data are exchanged—whether it's customer identification, financial details, medical records, or other sensitive information.
3. Purpose of Data Sharing: Organizations must justify why the data is being shared. Is it for analytics, processing transactions, or some other purpose? This transparency is critical under PDPL.
4. Ability to Introspect Data: Beyond listing the data, companies need to be able to introspect and understand what personal data is flowing through their systems to ensure they can respond to data subjects' requests for access, rectification, or deletion.

Why Automated Monitoring is Essential

Given the complexity of data exchanges, manually tracking interactions with third parties is not a sustainable solution. A company may rely on hundreds of subprocessors across various departments, and without a centralized, automated system in place, there is a significant risk of human error. Manual cataloging also creates gaps in the oversight process, potentially exposing companies to non-compliance issues, audits, and fines.

An automated system for cataloging and monitoring data flows is critical to ensuring compliance with the PDPL. Such a system should be capable of:

• Real-Time Data Monitoring: Tracking data flows in real time, ensuring that any updates to subprocessors or changes in data sharing practices are immediately reflected in the company's records.
• Automated Detection of Data Misuse: Identifying any suspicious activity or unauthorized sharing of personal data, which can trigger immediate corrective actions.
• Audit-Readiness: Maintaining comprehensive logs of data processing activities that can be readily accessed during regulatory audits or internal reviews.

These automated systems can reduce the administrative burden and allow companies to focus on proactive data governance rather than reactive damage control after a breach or violation.

Roles Responsible for PDPL Compliance

To effectively implement PDPL compliance, several key roles within a company should be involved:

• Chief Information Security Officer (CISO): The CISO is responsible for ensuring that all data protection measures are in place and that the company’s information security practices align with the PDPL.
• Data Protection Officer (DPO): Under the PDPL, organizations must appoint a DPO to oversee compliance efforts. This role involves ensuring that data processing practices are legal and transparent and managing relationships with data subjects and regulators.
• Chief Compliance Officer (CCO): The CCO ensures that the organization adheres to the legal requirements of the PDPL and manages risks associated with non-compliance.
• IT and Data Management Teams: These teams play a crucial role in implementing the technical solutions necessary to monitor data flows and maintain an accurate catalog of third-party interactions.

Conclusion

Complying with the PDPL in Saudi Arabia is no small feat, especially for companies that rely on complex data ecosystems with numerous third-party subprocessors. Maintaining an accurate and up-to-date catalog of all data exchanges is essential to meeting the law's transparency requirements and ensuring that personal data is protected.

Manual processes are prone to errors and inefficiencies, leaving companies vulnerable to compliance risks. Instead, investing in automated systems that can continuously monitor data flows, detect anomalies, and ensure audit readiness is the best way forward. Not only does this simplify compliance, but it also enhances a company's overall data governance posture, providing peace of mind in an increasingly regulated landscape.