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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
