U.S. Companies Warn Saudi Arabia New Data Law Could Hit Investment - Bloomberg
The largest business lobbying group in the U.S. has warned Saudi Arabia that a new privacy and data law will raise the cost of doing business in the kingdom and complicate efforts to attract foreign investors and wean its economy off a dependence on oil sales.
Saudi Arabia in September issued a draft of its personal data protection law, known as PDPL, which in its current form prevents the transfer of personal data outside the kingdom without any individual exemptions. Companies that don’t comply face criminal sanctions, according to a letter sent by the U.S. Chamber of Commerce earlier this year and seen by Bloomberg.
“There are several aspects of this law that pose not only significant problems for the private sector but will be significant barriers to helping the Kingdom achieve its goal to become a digital hub,” the group, which represents more than 3 million businesses, said in the letter. “It will have a major impact on the cost and ability to do business in the Kingdom.”
Saudi Arabia’s Crown Prince Mohammed bin Salman is looking to attract more foreign investors as part of an ambitious plan to diversify the economy away from oil. It’s vying with other financial centers in the region such as Dubai and Abu Dhabi to become the Gulf’s premier business hub.
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