Governance and Policy ManagementSDAIA PDPL Series Part 2: Risk Assessment Guidelines for Transferring Data Outside the Kingdom
Cross-border data transfers represent one of the most complex aspects of Saudi Arabia’s Personal Data Protection Law (PDPL), requiring organizations to balance business needs with stringent regulatory compliance. Following our comprehensive overview of Saudi Arabia’s Personal Data Protection Law, this second installment examines the recently published risk assessment guidelines that organizations must follow when transferring personal data outside the Kingdom.
In February 2025, the Saudi Data & AI Authority (SDAIA) introduced comprehensive Risk Assessment Guidelines for transferring personal data outside the Kingdom of Saudi Arabia, providing businesses with structured methodologies for evaluating and mitigating transfer risks. These guidelines complement the existing regulatory framework while establishing clearer pathways for compliant international data flows.
The Regulatory Foundation for Cross-Border Transfers
The PDPL’s approach to international data transfers reflects Saudi Arabia’s commitment to data sovereignty while recognizing the practical realities of global business operations. Article 29 of the PDPL establishes the fundamental principle that personal data transfers outside the Kingdom require specific legal justification and adequate protection measures.
Unlike some international frameworks that allow transfers based solely on adequacy decisions, Saudi Arabia’s approach emphasizes comprehensive risk assessment and ongoing monitoring. Organizations cannot simply rely on generic contractual clauses or assume that transfers to certain jurisdictions are automatically permissible.
The regulatory framework requires organizations to demonstrate that international transfers serve legitimate purposes while maintaining protection standards equivalent to those mandated within the Kingdom. This approach reflects a growing global trend toward ensuring that data protection rights remain intact regardless of where personal data is processed.
Understanding the Four-Phase Risk Assessment Framework
SDAIA’s risk assessment guidelines establish a systematic four-phase approach that organizations must follow before transferring personal data outside Saudi Arabia. This structured methodology ensures comprehensive evaluation of all relevant factors while providing clear documentation requirements for regulatory compliance.
Phase One: Preparation and Initial Assessment
The preparation phase requires organizations to conduct fundamental assessments that determine whether risk evaluation procedures are mandatory for their specific data processing activities. Organizations must first determine whether their processing involves sensitive data categories, which automatically require comprehensive risk assessment procedures.
The guidelines also mandate assessment when organizations collect, compare, or link multiple datasets from various sources, recognizing the enhanced privacy risks associated with data aggregation activities. Large-scale processing operations targeting individuals with limited legal capacity require special attention, as do activities involving continuous monitoring, emerging technologies, or automated decision-making systems.
Organizations must articulate precise purposes for data processing, making them identifiable and directly related to specific business objectives rather than vague operational goals. The preparation phase includes detailed documentation of the specific product or service involving personal data processing, ensuring clear alignment between organizational activities and stated collection purposes.
Phase Two: Comprehensive Data Processing Context Analysis
The second phase requires organizations to map their complete data processing lifecycle, from initial collection through final destruction. During the collection phase, organizations must identify all sources of personal data acquisition, whether obtained directly from data subjects or through third-party entities.
Documentation must include all collection methods, from electronic forms and cookies to more sophisticated tracking technologies. The storage and retention analysis requires precise geographic identification of data locations, including specific countries where personal data resides.
Organizations must distinguish between public cloud, private cloud, and on-premises storage solutions, as each presents different risk profiles for international transfers. Retention periods must be clearly specified and justified, whether based on statutory requirements or business necessity related to the original collection purpose.
The disclosure phase requires comprehensive identification of all entities receiving personal data, whether located within or outside the Kingdom. Organizations must account for subsequent transfers by third parties, as these can create complex chains of data sharing that extend far beyond initial transfer arrangements.
Phase Three: Negative Impact and Risk Evaluation
The third phase establishes systematic procedures for evaluating potential negative impacts and risks associated with personal data processing activities. Organizations must link specific risk elements to each identified processing activity, adopting internationally recognized standards for risk assessment and threat analysis.
The vulnerability assessment examines the adequacy of measures implemented to ensure compliance with PDPL provisions, controls, and procedures. Threat source identification encompasses both internal and external entities that might engage in unauthorized personal data processing, whether intentionally or through negligence.
Impact assessment evaluates the potential damage extent, considering effects on individual data subjects, their families and social networks, and broader community implications. Probability analysis examines the likelihood of specific events occurring based on available threat actor resources and capabilities.
The risk level determination combines impact severity with occurrence probability, providing quantitative or qualitative measures that support decision-making processes. Organizations must identify suitable controls and preventive measures to minimize risks or mitigate their impact when incidents occur.
Phase Four: Cross-Border Transfer Specific Risk Assessment
The final step concentrates on risks linked to sharing or transferring personal data outside Saudi Arabia. Organizations need to check if their proposed data transfers are subject to the mandatory risk assessment rules in Article VII of the Transfer Regulations.
The data transfer analysis considers specific transfer methods, such as remote access, data collection for international processing, cross-border storage, and disclosures to external entities. Organizations should record how often data is transferred, the categories of data subjects involved, and the exact personal data content being shared. When evaluating recipient entities, organizations must thoroughly assess their compliance with PDPL requirements, especially regarding disclosures, transit, and further transfers. They should also review the technical, security, and legal measures that recipients have in place.
Evaluating Vital Interests of the Kingdom
The guidelines establish specific procedures for analyzing impacts on Saudi Arabia’s vital interests, reflecting the Kingdom’s commitment to maintaining data sovereignty while enabling legitimate business activities. Organizations must evaluate the scope of processing activities, including personal data content, affected data subject numbers, and relevant categories.
The impact scope analysis examines whether transfer consequences remain limited to individual data subjects, extend to families and social networks, or reach broader societal levels. Organizations must consider cumulative effects that might not be apparent when examining individual transfers in isolation.
When assessment results indicate high risk levels with irreversible short-term impacts on individual or community interests, organizations must explore alternative approaches. This might involve reassessing processing necessity, eliminating or modifying activities, or implementing more effective protective measures.
Practical Implementation Strategies
Successful implementation of SDAIA’s risk assessment guidelines requires systematic approaches that integrate regulatory compliance with business operations. SDAIA has provided supporting tools designed to assist organizations in completing risk assessment procedures, available through the National Data Governance Platform.
Organizations should establish clear roles and responsibilities for transfer risk assessment, ensuring appropriate expertise is available throughout the evaluation process. Regular training programs help staff understand their obligations and maintain current knowledge of regulatory developments.
Documentation requirements extend beyond initial assessments to include ongoing monitoring and periodic review procedures. Organizations must maintain comprehensive records demonstrating compliance with all guideline requirements, supporting regulatory inquiries and internal audit activities.
Integration with Existing Compliance Programs
The risk assessment guidelines complement existing PDPL compliance obligations, including those covered in our previous blog on data breach incident response frameworks. Organizations should integrate transfer risk assessment with broader data protection impact assessments and privacy management programs.
Cross-border transfer assessments should align with general data processing risk evaluations, avoiding duplicative efforts while ensuring comprehensive coverage of all relevant factors. Regular coordination between data protection officers, legal teams, and operational units ensures that transfer risk assessments reflect current business realities while maintaining regulatory compliance.
Enforcement and Compliance Monitoring
SDAIA’s enforcement approach emphasizes proactive compliance verification through comprehensive documentation review and periodic assessments. Organizations that fail to conduct required risk assessments face significant penalties.
Organizations should implement internal audit procedures to verify ongoing compliance with risk assessment requirements, identifying potential gaps before regulatory review. These proactive measures demonstrate good faith compliance efforts while reducing exposure to enforcement actions.
Conclusion
Success in managing data breach incidents under the PDPL requires more than regulatory compliance. Organizations should view breach response as an integral component of their overall data protection strategy. This involves implementing robust preventive measures alongside effective incident response capabilities.
Regular risk assessments help identify potential vulnerabilities before they result in actual breaches. Comprehensive audit trails provide early warning signs of unusual activities that may indicate security incidents. Third-party vendors and service providers should be held to similar standards. This ensures that the entire data processing ecosystem maintains appropriate security and incident response capabilities.
The PDPL’s breach incident framework reflects Saudi Arabia’s commitment to protecting personal data through comprehensive regulatory oversight and organizational accountability. By implementing effective breach response procedures, organizations can meet their legal obligations while building trust with data subjects and stakeholders in an increasingly data-dependent business environment.