The Saudi Arabian Personal Data Protection Law (PDPL) does not explicitly use the factor of "Processing in Context of Local Establishment" to determine its applicability. Instead, it focuses on the location of data processing and the residence of data subjects.

Text of Relevant Provisions

KSA PDPL Article 2(1):

"The Law applies to any Processing of Personal Data related to individuals that takes place in the Kingdom by any means, including the Processing of Personal Data related to individuals residing in the Kingdom by any means from any party outside the Kingdom. This includes the data of the deceased if it would lead to them or a member of their family being identified specifically."

Analysis of Provisions

The KSA PDPL's scope of application is primarily determined by two factors:

1. The location of data processing: The law applies to "any Processing of Personal Data related to individuals that takes place in the Kingdom by any means". This means that any data processing occurring within Saudi Arabia falls under the law's jurisdiction, regardless of the data subject's location or the data controller's establishment.
2. The residence of data subjects: The law extends its application to "the Processing of Personal Data related to individuals residing in the Kingdom by any means from any party outside the Kingdom". This provision ensures that the law protects Saudi residents' data even when processed by foreign entities outside the country.

Notably, the law does not explicitly mention the concept of "establishment" or extend its application based on the presence of a local branch or office of a foreign entity. Instead, it focuses on the actual processing activities and the residence of data subjects.

The law also includes a unique provision extending protection to "the data of the deceased if it would lead to them or a member of their family being identified specifically". This broadens the scope of protected individuals beyond living data subjects.

Implications

The broad scope of the KSA PDPL has significant implications for businesses:

1. Local processing: Any company processing personal data within Saudi Arabia must comply with the PDPL, regardless of where the company is established or where the data subjects reside.
2. Processing data of Saudi residents: Foreign companies processing personal data of Saudi residents must comply with the PDPL, even if they have no physical presence in the Kingdom. This extraterritorial reach means that many international businesses may fall under the law's jurisdiction.
3. Deceased individuals' data: Companies must be cautious when handling data that could identify deceased individuals or their family members, as such data is also protected under the law.
4. No establishment-based exemptions: Unlike some other jurisdictions, the KSA PDPL does not provide exemptions based on the lack of local establishment. This means that even companies without any physical presence in Saudi Arabia may need to comply if they process data of Saudi residents.
5. Broad applicability: The phrase "by any means" suggests that the law applies regardless of the technology or method used for data processing, encompassing both traditional and emerging data processing techniques.