Navigating International Data Transfers Under Bahrain’s PDPL: A Comprehensive Overview

As the digital economy continues to expand, the regulation of international data transfers has become a critical focus for businesses worldwide. In the Kingdom of Bahrain, this is governed by the Personal Data Protection Law (PDPL), Law No. 30 of 2018 (the text is available here), a landmark legislation that aligns Bahrain with global data protection standards, such as the EU’s GDPR, while introducing unique local nuances. Enacted on July 12, 2018, and effective since August 1, 2019, the PDPL establishes a robust framework to safeguard personal data, overseen by Bahrain’s Personal Data Protection Authority (PDPA). In this article, I’ll explore the PDPL’s approach to international data transfers, the role of the PDPA (visit their official site here), and the specific mechanisms businesses can use to comply, along with key guidelines shaping this landscape.

The PDPL of 2018: A Snapshot

Bahrain’s PDPL applies to individuals and entities processing personal data in Bahrain, as well as those outside the Kingdom using means available in Bahrain (except for mere transit purposes). It defines personal data broadly as any information relating to an identifiable individual and imposes strict rules on its collection, processing, and transfer. The law’s extraterritorial scope ensures that even non-Bahraini businesses handling Bahraini residents’ data must comply, reflecting Bahrain’s commitment to privacy in a globalised world. Violations can lead to severe penalties, including fines up to BHD 20,000 (approximately $53,000) or imprisonment for up to one year, particularly for unauthorised transfers of personal data abroad.

The PDPA, established to enforce the PDPL, plays a pivotal role in regulating data protection. Temporarily housed under the Ministry of Justice, Islamic Affairs, and Endowments until its full operational independence, the PDPA issues authorisations, investigates breaches, and maintains a whitelist of countries deemed to offer adequate data protection. Its website (pdpa.gov.bh) serves as a vital resource for compliance updates and guidance.

Regulating International Data Transfers: The Core Principle

Under Article 12 of the PDPL, transferring personal data outside Bahrain is prohibited unless the destination country or region is on the PDPA’s approved list—referred to as the “Adequacy List”—which certifies sufficient data protection standards. However, Article 13 provides exceptions where transfers to non-listed countries are permissible under specific conditions. Let’s break down all the ways to legally transfer data abroad under the PDPL:

1. Transfer to an Approved Country (Article 12) The PDPA’s Resolution No. 42 of 2022 expanded the Adequacy List to 83 countries, including the EU nations, UK, USA, UAE, Saudi Arabia, and India. Transfers to these jurisdictions are straightforward, requiring only that data subjects’ consent or a contractual/legal basis is secured, as per the PDPL’s general consent provisions. This whitelist, updated periodically, facilitates seamless data flows while ensuring privacy standards align with Bahrain’s expectations.
2. Data Subject Consent (Article 13(a)) If the destination isn’t on the Adequacy List, explicit written consent from the data subject allows the transfer. Resolution No. 48 of 2022 clarifies that consent must be freely given and specific, invalidating forced consent scenarios (e.g., via website cookie walls). Data subjects can withdraw consent at any time, requiring businesses to halt further processing beyond retention for legal obligations.
3. Contractual Necessity (Article 13(b) and (c)) Transfers are permitted if necessary to execute or conclude a contract between the data subject and the data controller, or between the data controller and a third party for the data subject’s benefit. This covers scenarios like e-commerce transactions or service agreements involving overseas providers.
4. Vital Interests (Article 13(d)) Data can be transferred to protect the vital interests of the data subject, such as in medical emergencies where overseas treatment or data sharing is required.
5. Legal Claims (Article 13(e)) Transfers necessary for preparing, pursuing, or defending a legal claim are allowed, supporting cross-border litigation or compliance with international legal obligations.
6. Public Sources (Article 13(f)) If personal data is sourced from a publicly available register or document, it can be transferred abroad without restriction, provided it aligns with the original purpose of collection.

Important: the PDPA may also authorise a transfer of personal data, or collection thereof, to another country or territory that does not ensure an adequate level of protection within the meaning of Article 12 of the PDPL, where the data controller adduces adequate safeguards with respect to the protection of the privacy and fundamental rights and freedoms of individuals. These safeguards may –in particular- be prescribed according to a contract to which the data controller is a party, and the PDPA shall accordingly subject the grant of such authorisation to fulfilment of certain conditions.

Guidelines and Supporting Resolutions

The PDPL is bolstered by resolutions issued in March 2022, providing detailed guidance. Key among them:

• Resolution No. 42 of 2022: Defines the Adequacy List and conditions for transfers.
• Resolution No. 43 of 2022: Outlines minimum technical and organisational measures, including breach notification within 72 hours if rights are impacted (noted by Clyde & Co).
• Resolution No. 48 of 2022: Governs electronic consent, ensuring transparency and validity.

These resolutions, while not all directly hyperlinked due to publication in Bahrain’s Official Gazette, are accessible via the PDPA or legal summaries online. Businesses should also note Resolution No. 44 of 2022, which mandates prior notification to the PDPA for certain processing activities, potentially including transfers requiring authorisation.

You may find the full list of currently adopted guidelines here.

Practical Implications for Businesses

For organisations operating in or with Bahrain, compliance involves mapping data flows, securing consents where needed, and verifying destination countries against the Adequacy List. Appointing a Data Protection Officer (per Resolution No. 46 of 2022) can streamline this process, especially for firms handling sensitive data. Regular training and audits, as recommended in Resolution No. 43, ensure ongoing adherence.

While the PDPL does not explicitly mandate data localisation—i.e., requiring personal data to be stored within Bahrain, sector-specific regulations, such as Bahrain’s Cloud Computing Law for Government Entities (Law No. 56 of 2018), further impose strict localisation for public sector data, requiring it to remain in Bahrain unless approved otherwise. While this applies to government bodies, private entities in regulated sectors (e.g., finance, telecom) may face similar expectations via ministerial orders or industry guidelines, though no blanket PDPL localisation rule exists yet.

Bahrain’s PDPL strikes a balance between fostering digital innovation and protecting privacy, making it a model for the GCC region. By understanding and leveraging its transfer mechanisms—whether through the whitelist, consent, or contractual needs—businesses can confidently navigate international data flows while aligning with this forward-thinking framework.