On 10 March 2024, the Saudi Data and Artificial Intelligence Authority (SDAIA) launched a public consultation for its draft Data Sovereignty Public Policy.
Driven by the rapid pace of technological advancements, the transition towards a data-driven economy, and the risks associated with personal data handling, this Policy seeks to establish the fundamental principles and general orientations of Saudi Arabia regarding data sovereignty. It aims to ensure the preservation of the Kingdom’s sovereignty over its data while developing, enabling, and harnessing it.
The draft Data Sovereignty Public Policy outlines four key principles:
Data as a National Asset
Data is considered a national asset to be enriched, utilised, and governed. The policy aims to ensure Saudi Arabia’s sovereignty over its data through laws, regulations, and policies.
Data Protection
There is a strong emphasis on data protection, including regulating the hosting, storage, and transfer of non-personal data from government entities and critical national infrastructure operators within Saudi Arabia. There is also an emphasis on regulating personal data collection, processing, and retention by public and private entities, with a focus on preserving individual privacy and protecting against data breaches.
Data Availability
The policy aims to ensure that competent authorities have timely access to data when needed to perform their functions, as well as the appropriate regulation of processing requests from foreign entities to obtain data for law enforcement, security, or judicial purposes.
Encouragement of Local and Foreign Investment
The policy encourages local digital companies and innovation, while also seeking to attract foreign digital investments and prevent monopolistic practices.
Designed to balance digital growth and investment with national sovereignty over data, this policy is a testament to SDAIA’s progressive approach to regulating data. With that said, affected companies operating in Saudi Arabia need to carefully evaluate the policy’s implications and ensure compliance with data protection and data localisation requirements, as the policy may pose operational and regulatory alignment challenges.
The deadline to respond to the consultation is 9 April 2024.
For help interpreting this policy for your business, or for support with responding to the consultation, please contact Dana Ramadan at [email protected].
