Data Use Agreement Template for Saudi Arabia

A Data Use Agreement is a legally binding contract that governs how personal and sensitive data can be shared, processed, and used between organizations in Saudi Arabia. Under the Kingdom's Personal Data Protection Law (PDPL), this document ensures that all parties comply with strict data protection requirements while maintaining alignment with Shari'ah principles that underpin all contractual relationships in Saudi Arabia.

When do you need this document?

You need a Data Use Agreement when your organization plans to share data with external parties, whether for research purposes, business operations, or service delivery. This includes scenarios where healthcare providers share patient data with research institutions, financial institutions outsource data processing to third-party service providers, or government entities collaborate with private organizations on data-driven projects. The agreement is particularly crucial when implementing cloud computing services, as CITC regulations require specific data localization and security measures. Any cross-border data transfer or joint data processing arrangement between multiple controllers also mandates a comprehensive data use agreement to ensure PDPL compliance.

Key legal considerations

Your Data Use Agreement must clearly define the roles and responsibilities of each party, particularly distinguishing between data controllers, processors, exporters, and importers as outlined in the PDPL. The document should specify the exact purposes for which data can be used, ensuring these purposes are lawful, legitimate, and clearly communicated to data subjects. Security measures must be detailed, including technical and organizational safeguards that meet both PDPL requirements and Anti-Cyber Crime Law provisions. Breach notification procedures, data retention periods, and deletion requirements need explicit coverage. The agreement must also address confidentiality obligations, audit rights, and liability allocation between parties. Given Saudi Arabia's Islamic legal framework, all contractual terms must comply with Shari'ah principles, avoiding prohibited elements such as excessive uncertainty or unfair advantage.

Legal requirements in Saudi Arabia

Under Saudi Arabia's PDPL, your Data Use Agreement must incorporate specific legal safeguards and compliance mechanisms. The document must ensure lawful bases for data processing are established and maintained throughout the data sharing relationship. For international data transfers, you must implement adequate protection measures and potentially obtain regulatory approval from the National Data Management Office. The agreement should reference compliance with the Electronic Transactions Law for digital signatures and electronic contract validity. Cloud service arrangements must align with CITC's Cloud Computing Regulatory Framework, including data residency requirements and security standards. All parties must demonstrate their ability to respond to data subject rights requests, including access, correction, and deletion rights as mandated by the PDPL. The agreement should also establish procedures for regulatory cooperation and compliance monitoring to ensure ongoing adherence to evolving Saudi data protection requirements.