The factor of an entity's link or presence in the jurisdiction is used to determine the applicability of the data protection law in Bahrain. This factor is crucial in setting the scope of the law's application, as it specifies which entities are subject to the law's provisions.

Text of Relevant Provisions

Bahrain RPDPL Article 2:

"This Law shall apply to the following persons:◦ Every natural person who is habitually resident in the Kingdom or maintains a place of business in the Kingdom ;◦ Every legal person with a place of business in the Kingdom ;◦ Every natural or legal person not habitually resident nor maintains a place of business in the Kingdom, but processes data by using means situated in the Kingdom, unless such means are used only for purposes of transit of data over the Kingdom’s territory ."

Analysis of Provisions

The relevant provision, Article 2 of the Bahrain RPDPL, clearly outlines the entities that fall within the scope of the law. The law applies to natural persons who are habitually resident in Bahrain or maintain a place of business in the kingdom, as well as legal persons with a place of business in Bahrain. Additionally, it applies to entities that process data using means situated in Bahrain, unless such processing is merely for the purpose of data transit.

The use of the phrases "habitually resident in the Kingdom" and "maintains a place of business in the Kingdom" indicates that the law aims to cover entities with a significant connection to Bahrain. This includes both individuals and legal entities that have a physical presence in the country.

The provision also extends to entities that process data using means situated in Bahrain, which ensures that even if an entity is not based in Bahrain, it is still subject to the law if it uses Bahrain-based means for data processing. However, the exemption for data transit purposes limits the law's application to situations where data is merely passing through Bahrain without being processed or stored there.

Implications

The implications of this factor for businesses are significant. Any entity with a presence in Bahrain, whether through a physical office or by using Bahrain-based means for data processing, must comply with the provisions of the Bahrain RPDPL. This includes ensuring that personal data is processed in accordance with the law's requirements, such as obtaining consent from data subjects and implementing appropriate data protection measures.

Examples of situations where the law applies due to this factor include:

• A company with its headquarters in Bahrain processing personal data of its employees.
• A foreign company with a branch office in Bahrain processing personal data of its customers.
• A cloud service provider using data centers located in Bahrain to process personal data on behalf of its clients.

Conversely, the law does not apply to entities that do not have a presence in Bahrain and do not use Bahrain-based means for data processing, unless they are processing data for purposes other than mere transit.