ARTICLE
21 March 2025

Impact Of Saudi Cybersecurity Laws On Businesses

Hamad in association with Youssry Saleh & Partners

Contributor

Hamad in Association with Youssry Saleh & Partners is a large proficient law firm with over 40 years of experience in the Egyptian and Saudi Arabian markets. The firm brings together the expertise and resources of 2 prominent firms solidifying their position as a leading legal provider in the Kingdom of Saudi Arabia.
Saudi Arabia has achieved notable advancements in building up its cybersecurity system throughout the last few years.
Saudi Arabia Technology

Saudi Arabia has achieved notable advancements in building up its cybersecurity system throughout the last few years. Vision 2030 from the Kingdom establishes two main objectives to make digital infrastructure stronger while improving economic diversity yet places cybersecurity at its core. These improvements are guided by Saudi Cybersecurity Laws, ensuring comprehensive protections and governance.

The Cybersecurity initiative within the Kingdom works as a system to provide secure environments for data operations and digital procedures. The national cybersecurity strategy involves three main elements which include creating plans as well as their execution followed by strategy oversight to protect digital assets in accordance with Saudi Cybersecurity Laws.

The National Cybersecurity Strategy and Legal Framework

The Royal Decree No. M/17 issued on 3/8/1428 through Anti-Cyber Crime Law defines cybercrimes and determines their respective punishments. Specifically, the law serves to improve information security while defending computer and information network user rights and protecting the public interest along with protecting both morals and the national economy in line with Saudi Cybersecurity Laws.

Anti-Cyber Crime Law and the Role of the National Cybersecurity Authority (NCA)

The establishment of the National Cybersecurity Authority occurred through Royal Decree No. (6801) on 11/2/1439 AH, which designated its two primary functions as cybersecurity leadership for the Kingdom and national cybersecurity reference center. The National Cybersecurity Authority takes protection of essential national interests and state security as its critical main goals while it safeguards vital infrastructure and key sectors such as public services and government activities.

National Cybersecurity Authority emerged from Royal Decree No. (6801) on 11/2/1439 AH to fulfill Kingdom-specific cybersecurity duties along with acting as the central national source for cybersecurity matters while working to develop cybersecurity instruments for state vital interests and national security protection and critical infrastructure defense and vital sectors and public services and governmental functions.

Cybersecurity Regulations and Compliance for Businesses

The National Cybersecurity Authority (NCA) produced multiple cybersecurity-related controls and guidelines which serve as national standards. The policies seek to boost cybersecurity strength which defends essential national elements and protects national security and critical infrastructure together with essential government services. The NCA has established several cybersecurity controls as well as frameworks and guidelines which consist of:

  • Cybersecurity Controls for Organizations' Social Media Accounts
  • Essential Cybersecurity Controls
  • Cloud Cybersecurity Controls
  • Telework Cybersecurity Controls (TCC)
  • Cybersecurity Controls for Critical Systems
  • Operational Technology Cybersecurity Controls
  • Data Cybersecurity Controls
  • The Saudi Cybersecurity Workforce Framework (SCyWF)
  • The National Cryptographic Standards (NCS)
  • The Saudi Cybersecurity Higher Education Framework (SCyber-Edu)
  • Cybersecurity Guidelines for e-Commerce

An analysis by Fintech Saudi Arabia shows that potential opportunities exist in Saudi Arabia to develop Cyber Security Solutions.

Cybersecurity and Business Protection

Business protection from online threats targets IT systems and business data against hacking attempts and unauthorized data breaches through cybersecurity solutions. The main purpose of these solutions helps businesses maintain information integrity alongside confidentiality and availability protection.

These following examples illustrate the exact reasons why organizations must implement cybersecurity solutions:

  • The protection of data integrity together with customer-supplier and employee-trust stands as a key strategy for maintaining organizational reputation.
  • A company maintains its business lead through data protection of critical elements including open-source documents and intellectual property from spyware exposure.
  • The daily operational function and productivity remain intact when businesses prevent lost time due to downtime which occurs from targeted cyber-attacks like denial-of-service attacks.

Financial Impact and Market Growth of Cybersecurity in Saudi Arabia

The growing endangerment from cyberattacks threatens worldwide financial institutions but their present infrastructure shows limited ability to defend themselves. Financial services organizations face attacks at a rate of 300 times greater than all other types of businesses.

The annual expenses from cybercrime attacks have surged to $18.5 million for worldwide financial institutions The Saudi Arabian market for cybersecurity reached a total value of SAR 10.9 billion or USD 2.9 billion during 2019.

Legal Implications for Businesses

Compliance Requirements

All Saudi Arabian businesses need to follow the content of both the NCA's cybersecurity framework and the PDPL. Compliance entails:

  • Risk Assessments: Remains a mandatory requirement for businesses since it enables them to detect vulnerabilities alongside potential threats.
  • Data Protection Measures: Businesses need to install technical security measures together with organizational security protocols including encryption and access control systems.
  • Incident Reporting: Businesses need to report cybersecurity incidents to the NCA through a predefined time period for open and immediate incident response.

Organizations that fail to follow required regulations will face penalties which might include operation suspension.

Potential Liabilities

Businesses become subject to new substantial legal responsibilities because of latest cybersecurity regulations. Companies may face:

  • Regulatory Sanctions: The failure to follow cybersecurity laws initiates administrative enforcement actions which produce regulatory sanctions from small financial penalties to complete business operational blocks.
  • Civil Liabilities: Businesses are responsible to pay damages because of data breaches and cybersecurity events when they show evidence of negligence throughout these incidents.
  • Reputational Damage: The impact of cyber incidents easily damages corporate reputation which causes customers to lose faith and prevents new business prospects from forming.

Impact on Business Operations

The cybersecurity laws modify business procedures through multiple regulatory changes:

  • Organizations must spend more money to operate their businesses when they implement cybersecurity regulations. These expenses include technology implementations alongside personnel training and recruitment.
  • Businesses need to redesign their operational structure by including data protection systems and satisfying new legal requirements through model modifications.
  • Aim to improve security resilience by fostering cooperation between businesses and stakeholders alongside the National Cybercrime Agency and other organizations.

Conclusion

The implementation of cybersecurity laws creates a new direction in Saudi Arabia which establishes digital regulation as a cornerstone. The digital sector businesses face substantial legal prerequisites from rules that seek to defend both businesses and consumers. Organizations facing the evolving legal framework must give priority to regulatory compliance and necessary cybersecurity spendings alongside constant attention to risk management to succeed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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