How Do SDAIA’s New Guidelines Affect Personal Data Transfers Outside Saudi Arabia?

On 25 February 2025, the Saudi Data and Artificial Intelligence Authority (SDAIA) issued a new set of guidelines to protect personal data in transfers or disclosures to parties outside the Kingdom. These guidelines harmonize with the Saudi Personal Data Protection Law (PDPL) and its Regulations, providing an organized methodology for organizations to identify and reduce data transfer risks. Even though not obligatory under the law, they are a significant point of reference for firms processing personal data.

What Are the Main Stages of the Risk Assessment Process?

The SDAIA guidelines prescribe four basic stages to undertake a thorough risk assessment for data transfers:

1. Preparation Phase

During this first phase, businesses need to determine if they need a risk assessment. This entails:

Presenting a detailed description of the product or service that entails processing personal data.

Aligning the data processing activity with the key goals of the organization.

Explicitly stating the purpose of collecting data and recognizing the context in which data is processed.

2. Evaluating Negative Impacts and Possible Risks

Organizations must evaluate potential adverse effects of data processing by:

Associating potential risks with their business operations.

Assessing current security measures and their alignment with the PDPL.

Applying controls to avoid, minimize, or offset risks.

3. Risk Assessment for Data Transfers Outside the Kingdom

This step involves:

Examining the character of the data transfer.

Verifying the compliance of the receiving entity with PDPL provisions.

Evaluating the sufficiency of risk-reducing measures adopted for transfers.

4. Evaluating Implications for Saudi Arabia’s Critical Interests

What are the national interests that companies must consider in the course of data transfers?

Organizations need to analyze the potential implications of data transfers on the Kingdom’s critical interests by:

Taking into account the scope and scale of data processing.

Analyzing whether the data transfer concerns only individuals or has wider implications for society.

Ensuring the sufficiency of measures to counter risks to national interests.

If high-risk levels continue to exist despite all precautions, companies must seek alternative means such as re-evaluating the need for the data processing or implementing more stringent security measures.

How does SDAIA’s approach differ from GDPR?

Though the SDAIA guidelines follow global best practices such as the EU’s General Data Protection Regulation (GDPR), there are some differences worth mentioning:

SDAIA is more concerned with holistic risk assessments that are associated with data exporters’ processing activities.

GDPR puts greater emphasis on the recipient country’s legal framework and data protection procedures.

SDAIA’s fourth phase also deals with the harm to national interests, something that is not explicitly brought to the fore in GDPR.

What do companies need to do to adhere to the guidelines?

In order to comply with the SDAIA guidelines, Saudi data controllers ought to:

Perform Mandatory Risk Assessments: Carefully assess possible risks prior to transferring data outside the Kingdom.

Keep Detailed Documentation: Properly document personal data processing activities, such as data collection, storage, use, and destruction.

Ensure Recipient Compliance: Confirm that receiving parties comply with PDPL requirements and have proper security in place.

Implement Mitigation Measures: Implement administrative, technical, and physical controls to reduce risks and update data transfer practices regularly.

Assess Impact on National Interests: Reflect on the ways in which data transfers may impact the Kingdom’s vital interests and society.

Explore Alternative Methods: In case of high risks, re-evaluate the need for data processing or use more secure means.

Conclusion

The new SDAIA guidelines are an important development to enhance personal data protection in Saudi Arabia. Through the introduction of a formal risk assessment process, companies are able to adhere to the Saudi PDPL and protect individuals’ privacy and the Kingdom’s important interests at the same time. Organizations need to actively bring their data transfer processes in line with these guidelines in order to foster trust, ensure regulatory compliance, and safeguard personal data internationally.