Key Differences Between Saudi Arabia’s PDPL and Europe’s GDPR: What You Need to Know

With the increasing global emphasis on data privacy and protection, two of the most prominent data protection laws are the Saudi Personal Data Protection Law (PDPL) and the European General Data Protection Regulation (GDPR). Both frameworks are designed to protect individuals' personal data and regulate how organizations handle that data. However, despite their similarities, there are key differences between the two laws that businesses need to understand, especially those operating in multiple jurisdictions.

Here's a closer look at the major differences between PDPL and GDPR:

1. Supervisory Authorities

• PDPL: The PDPL is currently under the supervision of the Saudi Data & Artificial Intelligence Authority (SDAIA). After an initial two-year period, supervision will transfer to the National Data Management Office (NDMO).
• GDPR: The GDPR is regulated by independent Data Protection Authorities (DPAs) in each EU member state. These DPAs have broad investigative and enforcement powers, ensuring uniform application across the EU.

Key Difference: While GDPR is enforced by independent authorities in each member state, PDPL has a more centralized supervisory structure, which will change in the future.

2. Scope of Application

• PDPL: PDPL applies to public and private entities within Saudi Arabia, as well as foreign organizations that process the personal data of Saudi residents. It also covers deceased individuals’ data, which is a unique provision.
• GDPR: GDPR applies to entities within the European Union and organizations outside the EU that process personal data of individuals within the EU. The GDPR’s extraterritorial scope is broader compared to the PDPL.

Key Difference: GDPR has a broader extraterritorial reach, covering any organization offering goods or services to EU residents, while PDPL’s international applicability is more focused on Saudi residents.

3. Legal Basis for Data Processing

• PDPL: The default basis for processing personal data under PDPL is obtaining explicit consent from the data subject. However, certain situations allow processing without consent, such as legal obligations, public interest, or safeguarding an individual’s life.
• GDPR: GDPR provides six legal bases for data processing, including consent, contractual necessity, legitimate interests, legal obligations, vital interests, and public interest.

Key Difference: GDPR offers more flexibility with six legal bases for data processing, whereas PDPL prioritizes consent but allows exceptions in specific cases.

4. Cross-Border Data Transfers

• PDPL: PDPL places strict controls on the transfer of personal data outside of Saudi Arabia. Cross-border transfers are only allowed in cases of extreme necessity or with special approvals to protect vital interests, health, or national security.
• GDPR: GDPR allows cross-border data transfers to countries deemed to have an adequate level of data protection, or through mechanisms such as Standard Contractual Clauses (SCCs) and Binding Corporate Rules (BCRs).

Key Difference: PDPL is more restrictive on cross-border data transfers, requiring additional approvals, while GDPR provides more structured mechanisms for international data sharing.

5. Data Subject Rights

• PDPL: Similar to GDPR, PDPL grants individuals several rights, including the right to access, rectification, erasure, and destruction of their data. One notable distinction is PDPL's provision for the destruction of data, which is defined as making the data permanently inaccessible.
• GDPR: GDPR grants more comprehensive rights, including the right to data portability and the right to object to automated decision-making and profiling.

Key Difference: GDPR offers broader rights, such as data portability and objection to automated decision-making, whereas PDPL is stricter with the right to data destruction.

6. Data Breach Notification

• PDPL: In the event of a data breach, PDPL mandates that the competent authority and the data subject must be notified as soon as possible. The law does not specify a precise notification period, but it requires immediate action if the breach poses significant harm.
• GDPR: GDPR requires data controllers to report data breaches to the supervisory authority within 72 hours of becoming aware of the breach and to notify affected data subjects if there is a high risk to their rights and freedoms.

Key Difference: GDPR specifies a strict 72-hour window for reporting data breaches, while PDPL focuses on immediate notification without a defined time frame.

7. Penalties and Fines

• PDPL: Violations of PDPL can result in severe penalties, including fines up to 3 million SAR (around $800,000) and imprisonment for up to two years. Repeated violations may result in doubled fines.
• GDPR: GDPR imposes much heavier fines for non-compliance, with penalties up to €20 million or 4% of global annual turnover, whichever is higher.

Key Difference: GDPR’s fines are significantly higher than those under PDPL, which reflects the broader scope and global applicability of the European regulation.

Conclusion

While both PDPL and GDPR share a common goal of protecting personal data and empowering individuals with control over their information, they differ in their scope, enforcement mechanisms, and legal frameworks. For businesses operating across these jurisdictions, it’s essential to understand these nuances and ensure compliance with both regulations where applicable.

By staying informed about the key differences, organizations can better navigate the complexities of data protection laws and implement robust data privacy practices that meet local and international standards.

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