The DIFC DPL extends its applicability to data processing activities that occur within the DIFC as part of "stable arrangements." This provision is designed to capture entities that have a consistent presence or ongoing operations within the DIFC, regardless of their place of incorporation.

The law specifically states that it applies to controllers and processors "regardless of its place of incorporation," which means that foreign entities are subject to the DIFC DPL if they meet the criteria of processing personal data in the DIFC as part of stable arrangements.

The phrase "other than on an occasional basis" further emphasizes that the law targets entities with a regular and established presence in the DIFC, rather than those that only engage in sporadic or infrequent data processing activities within the jurisdiction.

It's important to note that the law's application is limited to "the context of its Processing activity in the DIFC (and not in a Third Country)." This suggests that the DIFC DPL does not seek to regulate data processing activities that occur outside of the DIFC, even if they are conducted by entities with a stable arrangement in the DIFC.

The definition of "Group" in Schedule 1 Art. 3 is relevant as it clarifies how the law may apply to corporate groups. This definition allows for the possibility that a subsidiary or related entity operating in the DIFC could be subject to the law, even if the parent company is located elsewhere.

Implications

This provision has several implications for businesses:

1. Foreign companies with stable operations in the DIFC must comply with the DIFC DPL for their data processing activities within the DIFC, even if their headquarters or main operations are located elsewhere.
2. Companies need to assess whether their activities in the DIFC constitute "stable arrangements" or are merely occasional. Regular, ongoing operations would likely qualify as stable arrangements.
3. Multinational companies with subsidiaries or branch offices in the DIFC should be aware that these entities may be subject to the DIFC DPL, even if the parent company is not based in the UAE.
4. The law's application to data transfers out of the DIFC means that companies must ensure compliance with the DIFC DPL's data transfer provisions when moving personal data from the DIFC to other jurisdictions.
5. Companies should carefully evaluate their data processing activities to determine which fall within the scope of the DIFC DPL and which do not, as the law explicitly states it does not apply to processing activities in third countries.