Saudi Arabia ICT Cross-Border Data Transfer Rules Now Under Enforcement

Saudi Arabia is now actively enforcing its Personal Data Protection Law (PDPL) with the Saudi Data and Artificial Intelligence Authority (SDAIA) and the National Cybersecurity Authority (NCA) rolling out detailed enforcement mechanisms for cross-border data transfers. The regulations require companies to store sensitive and personally identifiable data within Saudi Arabia, unless specific exemptions are granted.

For U.S. companies offering cloud computing, SaaS, enterprise software, or data-driven digital services, this development carries significant implications. Global cloud infrastructure models may need restructuring to comply with data localization requirements.

The implementation also creates new demand for data residency solutions, local hosting infrastructure, and hybrid cloud models. U.S. companies that adapt quickly and align with local compliance needs may benefit from expanded access to government and enterprise contracts in the Kingdom.

U.S. technology providers should assess current data storage and transfer practices for compliance with PDPL. Companies are advised to explore options for in-country data hosting, cloud partnerships, and hybrid infrastructure offerings. Firms should also consult with legal counsel or the U.S. Commercial Service for guidance on exemption applications and technical structuring.

Any inquiries or requests for further information may be sent to Tareq.Ghazal@trade.gov