Doing business in Saudi Arabia but handling data from the EU? Then you’ve probably asked yourself: Does GDPR apply to me? The answer is yes, if you’re processing or storing data of EU citizens, the General Data Protection Regulation (GDPR) doesn’t care where your business is physically located. In the modern-day digital world, GDPR compliance for businesses is not an option, but rather a must-have among businesses that work in Saudi Arabia. Whether it is in email marketing, cloud storage, or elsewhere, a single slip-up may result in fines and legal battles and, even worse, the loss of trust in the customers.
However, Nothing to worry about. Here in this guide, we are going to simplify everything. You will learn how to become compliant and control cross-border data flows and save your business in the long term, whether you are a start-up or an established enterprise.
Why GDPR Compliance for Businesses Operating in Saudi Arabia Matters
Then what indeed is GDPR compliance to the enterprises established in Saudi Arabia, and why should it be of importance?
First of all, GDPR is a European regulation that aims to ensure the protection of the personal data of European citizens. Nevertheless, the regulation does not exclusively affect the business activities within the EU. As a matter of fact, it covers data of any company collecting or processing data belonging to individuals in the EU, irrespective of the location of the company. That said, how does that stack up? Moreover, should it happen that your business in Saudi Arabia:
- You either provide goods or services to EU citizens
- Follows what users do on your site via cookies
- Gathers the EU localized customers’ email addresses
Then you have to meet GDPR. Besides, serious consequences may follow non-compliance. Fines have been imposed on companies to the tune of up to 20 million euros or 4 percent of their annual global turnover. That is not a gamble you want to make.
Understanding Cross-Border Data Transfers
The concept of cross-border data transfer is one of the most difficult aspects of GDPR compliance for businesses located in Saudi Arabia. In simple terms, this implies transfer of personal information within the EU to a non-EU country, say, Saudi Arabia. Now this is where it gets complicated. Saudi Arabia is also a third country to the EU, which implies that it is not one of the countries where the transfer of data may take place with no restrictions. So, you should employ protection in order to transfer information in a legal way and without danger.
As an example, you may use:
- Standard Contractual Clauses (SCCs)
- Binding Corporate Rules (BCRs)
- Explicit, informed consent from the user
Although these solutions are legally accepted, they come with responsibilities. For instance, if you use SCCs, you must conduct a Transfer Impact Assessment (TIA) to ensure EU-level protections still apply. In addition, your security policies must align with GDPR principles such as data minimization and purpose limitation.
How Saudi Law Interacts with GDPR
Whereas the EU has GDPR in place, the Kingdom of Saudi Arabia has its data law, namely the Personal Data Protection Law (PDPL). In 2022, this rule became compulsory and is concentrated on the rights of people in Saudi Arabia.
Remarkably, PDPL shares overlap with GDPR compliance for businesses. For instance:
- Both need to engage the user to collect data and consent to the gathering of data
- The two provide users with the right to delete and access their information
- Data minimization and breach reporting are a focus of the two.
Nevertheless, it does have major variations. In other cases, such as the appointment of a Data Protection Officer (DPO), GDPR has various conditions, whereas PDPL does not. Moreover, the international transfer has stricter conditions under GDPR.
Thus, in case you are processing both EU and domestic information, you will have to structure a data privacy program capable of satisfying both the regulatory regimes. This may sound too complicated, yet it is entirely possible by using the relevant strategy and tools.
Practical Steps to Become GDPR Compliant
Here’s a step-by-step guide to make your GDPR compliance for businesses operating in Saudi Arabia smoother and more effective:
1. Map Your Data
First, identify all the personal data you collect, names, email addresses, locations, and IPs. Then, document where it’s stored and who can access it.
2. Review and Update Your Privacy Notices
Your privacy policy must be clear, easy to understand, and include the legal basis for data collection. Furthermore, it should inform users of their rights under GDPR.
3. Collect Consent the Right Way
Consent is supposed to be free, informed, and not vague. Pre-ticked boxes, therefore, need to be eliminated in favor of requiring active agreement of users before their information is sent.
4. Secure Your Data
Put in place powerful technical and organizational measures. As an example, encrypt data, employ multifactor authentication, and conduct periodic security audits.
5. Prepare for Data Requests
The residents of the EU are entitled to access, correct, or erase their data. Consequently, your organization must possess a written procedure to get back within 30 days.
6. Handle Transfers Legally
Apply SCCs or BCRs if your data passes the EU borders. Do not forget to record your legal ground as well as review your vendors to be in line with GDPR.
Final Thoughts
Nonetheless, at the end of the day, not only can GDPR protect businesses against fines and penalties in Saudi Arabia, but its adoption will help it establish confidence in the market, enhance the process of handling data, and ensure that your company is ready to expand to the global market.
Digital business carries an obligation of accountability since it is cross-border. Thus, be it the introduction of an app, the sale of goods, or customer behavior analysis, privacy regulation such as the GDPR is more important than ever. Do something now- not only because compliance is prudent. It’s essential.
Frequently Asked Questions
1. Do all Saudi businesses need to comply with GDPR?
Not necessarily. But when handling or targeting information on EU citizens, you must comply, wherever you are located.
2. What’s the penalty for non-compliance?
Fines may go to 20 million euros or 4% of your worldwide revenues. More to the point, failing to be compliant may mar your reputation.
3. Can I comply with GDPR and PDPL at the same time?
Yes, and ought to. There are overlaps, and a handful of controls should enable you to meet both regulations effectively.
