The protection of personal information becomes one of the most important legal and regulatory objectives, given Saudi Arabia’s movement toward digital systems. With the full implementation of the Personal Data Protection Law under the supervision of the Saudi Data & AI Authority, businesses in Saudi Arabia are expected to follow the rules closely on how they collect, handle, keep safe, and share data.
Failure to adhere seriously to these can result in heavy fines, damage to an institution’s image, disruption of operations, and even criminal charges. It’s important for all types of businesses—like online stores, banks, property companies, hospitals, and tech firms—to know and follow the PDPL.
What Are the Most Common Data Protection Violations in Saudi Arabia?
Certain common violations appear throughout the industries, generally from inadequate internal controls or a lack of understanding regarding regulatory requirements. Common examples include:
- Collecting personal data without a valid legal basis or explicit consent
- Data being kept for longer than necessary for the purpose intended
- Sharing data with any third party without due authorization
- Transfer personal data outside Saudi Arabia without the safeguards of the PDPL
- Not providing transparency regarding the usage of data
- Not implementing appropriate cybersecurity and organizational measures
- Failure to report data breaches to SDAIA within the required timelines
Although many of these violations are accidental in nature, the law still holds liability for organizations that fail to prevent them.
What are the Penalties for Breach of Data Privacy in Saudi Arabia?
The PDPL prescribes some of the severest penalties in the region: depending on the nature of the breach, companies may be liable to:
- Fines of up to 5 million SAR for the unauthorized international transfer of personal data
- Up to 3 million SAR for unauthorized disclosure or misuse of sensitive data
- Administrative sanctions issued directly by SDAIA
- Temporary suspension of all data-related activities
- Mandatory corrective actions and follow-up audits
- Criminal prosecution in cases of intentional or repeated violations
These penalties show the Kingdom’s commitment to ensuring a high level of data protection.
How might companies ensure compliance with Saudi data protection requirements?
Legal, technical, and organizational measures are necessary to ensure compliance. The necessary steps include:
- Obtain clear, informed, and written consent in advance of any processing of personal data
- Establish internal privacy policies and explicit data retention schedules
- Training employees on data protection practices and security protocols
- Ensuring adequate cyber-security protections against unauthorized access
- Conducting periodic assessments and internal data audits
- Keeping records of all data processing activities
- Establishing breach reporting and incident response procedures
- Review of contracts with third-party vendors handling personal data
For those organizations that do not know where to start, AHYSP Law Firm can offer full compliance reviews and bespoke implementation plans.
What Mistakes Typically Justify Fines According to Saudi Data Protection Law?
Some of the most common mistakes that prompt fines or investigations include:
- Vague consent forms that do not explain how data will be used
- Collecting more personal data than is required for business operations
- Lack of documented data retention policy
- Storage of data without justification for an indeterminate period
- Using software or third-party platforms that are not PDPL-compliant
- Failure to monitor the access privileges of employees and contractors
Early addressing of these weaknesses prevents violations before they happen.
How Should Companies Report a Data Breach Under Saudi Law?
The moment a breach happens, there has to be immediate action. Saudi regulations stipulate that an organization has to:
- Notify SDAIA immediately by specifying the breach and its impact
- Notify those affected in cases where the breach creates a real risk of harm to rights and freedoms
- Conduct a complete internal investigation and maintain detailed records
- Take corrective measures to prevent recurrence
- Keep a clear log of communications with relevant stakeholders
Failure to report promptly can lead to higher penalties and extended investigations.
How does SDAIA ensure compliance with the PDPL?
SDAIA uses several enforcement mechanisms to maintain a high standard for data protection:
- Periodic audits and scheduled compliance reviews
- Targeted inspections based on complaints or suspected violations
- Issurance of administrative fines
- Oversight of international data transfer authorizations
- Monitoring of Corrective Action Plans after Violation
- Public awareness campaigns and mandatory reporting by professionals
Companies operating within high-risk areas of finance or health care are more likely to be under regular scrutiny.
What are the rules concerning data retention and consent in Saudi Arabia?
Under the PDPL:
- Data should be kept only for the time necessary to fulfill the purpose for collection
- Consent has to be explicit, specific, and freely given; it cannot be ambiguous or through pre-ticked boxes
- People have the right to withdraw their consent anytime
- Data has to be securely deleted or anonymized as soon as the purpose is fulfilled
A well-structured retention policy significantly reduces compliance risks and supports operational transparency.
Can a company be held liable even if the data breach was unintentional?
Yes—absolutely.
One of the important features of the PDPL is that its liability is independent of intent. A company may still be liable, investigated, and ordered to take corrective action even if the breach was due to:
- Human error
- Poor training
- System misconfigurations
- Outdated software
- Negligent handling of devices containing personal data
- Poor access control practices
Unintentional data breaches are still considered failures in risk management and internal governance.
The Saudi regulators have underscored that organizations should take a proactive and preventive attitude toward data security. This means:
- Regular vulnerability assessments
- Compulsory privacy training for employees
- Strict governance of internal data flows
- Immediate patching of security weaknesses
- Strong encryption and authentication should be implemented
It will still be held liable even if a company had no intention to violate the PDPL, but it has failed to take reasonable steps to prevent the incident. This principle nudges organizations to build robust compliance systems rather than rely on good intentions.
If your organization has suffered a breach—whether intentional or accidental—AHYSP Law Firm can help navigate incident reporting, communications, and legal strategy.
Conclusion
Therefore, in turn, Saudi Arabia’s data protection landscape is rapidly evolving, and there is no option but compliance with the PDPL. Consequences related to non-compliance are serious: from very relevant financial penalties up to criminal liability. Businesses must adopt a structured preventive approach toward data governance, underpinned by solid internal policies, employee training, and effective cybersecurity measures.
If your company needs stronger data governance—whether it’s improving how you collect consent, updating retention rules, auditing compliance, or responding to a breach—AHYSP Law Firm walks with you through each step to ensure everything aligns with Saudi regulations.
