Under the Kingdom’s Personal Data Protection Law, compliance is not achieved through a ‎single document. The PDPL establishes a layered accountability framework that requires ‎organizations to govern personal data internally, control how third parties process it, and ‎assess risks before processing occurs. Within this framework, three instruments play ‎distinct and legally significant roles. The Data Protection Policy (DPP), the Data Processing ‎Agreement (DPA), and the Data Protection Impact Assessment (DPIA) are not ‎interchangeable. Each responds to a different obligation under Saudi law.‎
A Data Protection Policy is the starting point of PDPL compliance. The law requires ‎controllers to implement appropriate organizational measures to ensure that personal ‎data is processed in accordance with the PDPL and its implementing regulations. In ‎practice, this obligation cannot be met without an internal policy that defines ‎responsibilities, approval processes, security expectations, and escalation paths. SDAIA ‎evaluates whether an organization has established governance structures capable of ‎ensuring lawful processing. A Data Protection Policy provides evidence that the ‎organization has translated legal obligations into internal rules that guide employees and ‎decision makers. Without it, compliance becomes ad hoc and difficult to defend.‎
A Data Processing Agreement is required whenever a controller engages a third party to ‎process personal data on its behalf. The PDPL and its implementing regulations make clear ‎that controllers remain legally responsible for personal data even when processing is ‎outsourced. To meet this obligation, controllers must ensure that processors provide ‎sufficient guarantees to protect personal data and process it only in accordance with ‎documented instructions. A DPA is the legal mechanism through which these guarantees ‎are imposed. It defines the scope of processing, restricts use of data, requires appropriate ‎security measures, and establishes breach notification and audit rights. Without a DPA, a ‎controller cannot demonstrate that it has exercised the level of control over processors ‎required by Saudi law.‎
A Data Protection Impact Assessment addresses a different legal requirement. The PDPL ‎obliges controllers to assess risks associated with processing activities, particularly where ‎processing may result in harm to data subjects. This obligation is reinforced in the ‎implementing regulations, which require controllers to evaluate the nature, scope, ‎context, and purposes of processing and to implement measures to mitigate identified ‎risks. A DPIA is the structured method by which this assessment is conducted. It is ‎especially relevant for high-risk activities such as processing sensitive personal data, ‎large scale processing, or the use of new technologies. Regulators increasingly expect to ‎see evidence that risks were assessed before processing began, not after an incident ‎occurs.‎
From a regulatory perspective, these instruments serve complementary functions. The ‎Data Protection Policy establishes governance. The DPA extends that governance to third ‎parties. The DPIA demonstrates that the organization has actively evaluated and mitigated ‎risk. Missing any one of these creates a compliance gap that is difficult to justify during an ‎investigation or enforcement action.‎
In Saudi Arabia, PDPL compliance is assessed not only on whether obligations are ‎acknowledged, but on whether they are operationalized. Organizations that understand ‎the legal purpose of each of these tools are better positioned to demonstrate ‎accountability, reduce enforcement risk, and align with SDAIA’s expectations as the ‎regulatory regime continues to mature.‎
Mohammad Alahmad & Betania Allo
TMT Practice Group | Technology, Data, Cybersecurity & AI Governance