Understanding and Implementing Saudi Arabia's NDMO Standards

The Kingdom of Saudi Arabia (KSA) set out to improve the resilience of its data management landscape with the launch of the National Data Management and Personal Data Protection Standards, developed by the National Data Management Office (NDMO).

This comprehensive framework, which we'll delve into further, outlines key guidelines for companies operating in the KSA and significantly impacts regional data management practices.

Over the past decade, numerous data protection laws have come into place to ensure that companies maintain user privacy, don't use personal data to further business interests, and maintain user and company data security.

The best known of these laws is the EU's General Data Protection Regulation (GDPR), but countless other regulations in many jurisdictions have been introduced since its implementation.

One of the most recent laws is the Kingdom of Saudi Arabia's (KSA's) National Data Management and Personal Data Protection Standards.

This sweeping regulation, which was developed and enforced by the National Data Management Office (NDMO), has immediate and significant consequences for organizations operating in the territory. In this blog, we'll explain what the NDMO Standards are, who they impact, and how to remain compliant.

What are the KSA's NDMO standards?

The concept for the NDMO Standards was first floated in 2016 as part of the Kingdom's Vision 2030 initiative, with the Kingdom's PDPL (Personal Data Protection Law) coming into effect in 2023.

The NDMO Standards focus on securing personal and government-owned data, and a primary requirement is that data within KSA is strictly governed and remains within national borders.

In total, the NDMO Standards cover 77 controls and 191 compliance specifications. Understanding the breadth of the NDMO Standards can be daunting. So, the best way to address them is through the fifteen domains defined by the NDMO. These include:

• Data Governance

• Data Catalog and Metadata

• Data Quality

• Data Operations

• Document and Content Management

• Data Architecture and Modelling

• Reference and Master Data Management

• Business Intelligence and Analytics

• Data Sharing and Interoperability

• Data Value Realization

• Open Data

• Freedom of Information

• Data Classification

• Personal Data Protection

• Data Security and Protection

The 15 domains, or knowledge areas, are categorized by the NDMO into a three-level hierarchy. At the top is the Domain level, which defines each knowledge area according to the framework. The Control level focuses on grouping specifications that address a particular aspect within the domain.

Finally, the Specification level outlines the necessary actions for a company to comply with the framework.

Delving deeper into this framework, the 15 knowledge areas are organized into five specific control areas, each concentrating on distinct data management and protection aspects. Leading the list is data governance.

Why Should You Comply with NDMO Standard?

Adopting the NDMO Data Management and Personal Data Protection Standards Framework offers several strategic benefits for organizations in Saudi Arabia, including:

• Legal Compliance – By aligning with NDMO standards, organizations ensure full adherence to Saudi data protection laws, fulfilling both legal and ethical obligations related to safeguarding personal and governmental data.

• Enhanced Data Governance – Implement robust data governance frameworks that guarantee data integrity, accessibility, and regulatory alignment, fostering responsible management of sensitive data.

• Operational Efficiency – Boost data quality, optimize decision-making, and streamline business processes by implementing standardized, secure data management practices that align with NDMO regulations.

• Competitive Advantage – Organizations that comply with NDMO standards gain market credibility, establishing themselves as trusted and compliant partners. This can set them apart in competitive industries and increase their reputation.

• Avoid Costly Penalties – Proactive compliance helps mitigate financial, operational, and legal risks associated with regulatory violations, which can be costly both in terms of fines and reputational damage.

The NDMO Data Management and Personal Data Protection Standards Framework not only supports Saudi Arabia’s efforts to adhere to global data governance best practices but also caters specifically to the unique needs of public entities.

By complying with these standards, organizations can strengthen their data management capabilities, ensure regulatory adherence, and position themselves for future success in an increasingly digital world.

Who Needs to Comply with NDMO Standard?

The NDMO standard is comprehensive and applies to a broad range of organizations within Saudi Arabia, ensuring the secure and efficient management of government data. The following entities are required to comply:

• Public Entities: All government agencies, ministries, regulatory bodies, and public sector organizations must comply with the NDMO standards to ensure the effective management and protection of government data.

• Business Partners Handling Government Data: Private sector organizations that manage, process, or store government data, such as vendors and service providers, must also adhere to NDMO regulations.

The framework covers the handling of all forms of government data, including paper records, emails, digital files, videos, audio recordings, photos, and more.

It sets clear guidelines for ensuring that entities managing such data meet stringent privacy, security, and governance standards aligned with national policies and international best practices.

What Are the Penalties for Non-Compliance?

Organizations in Saudi Arabia that fail to comply with NDMO standards face significant consequences, including:

• Regulatory Fines and Sanctions: Non-compliance can result in hefty financial penalties, underlining the government's strong commitment to maintaining strict data governance and security.

• Legal Consequences: Violations of NDMO standards may lead to legal actions, operational restrictions, or the suspension of licenses, which could have severe implications for businesses.

• Reputational Damage: Non-compliance, particularly in the case of a data breach, can severely damage an organization’s reputation, leading to lost trust from customers, partners, and stakeholders.

• Operational Disruptions: Organizations that fail to comply may face audits, investigations, and the implementation of corrective actions, which can hinder normal business operations and incur additional costs.

Given Saudi Arabia’s rigorous approach to data governance, compliance with NDMO regulations is not optional; it’s essential.

Staying compliant not only helps organizations avoid the risks mentioned above but also fosters trust, positioning companies as reliable and law-abiding players in the market.

Why the framework matters and who it impacts

Any public entity in KSA or related businesses that handle government data must comply with the NDMO Standards. These entities are responsible for applying these standards to personal and government data.

Regarding personal data, businesses must implement the specifications to ensure that any Personally Identifiable Information (PII) or other personal data related to Saudi citizens is protected and managed accordingly. Regarding government data, the framework encompasses any raw or processed data sent to, created, or held by public entities.

The consequences of non-compliance are severe. For example, regarding the PDPL, the legislation states that:

"Without prejudice to any harsher penalty stipulated in another law, any individual discloses or publishes Sensitive Data, in violation of the provisions of the Law, with the intention of harming the Data Subject or achieving a personal benefit shall be punished with imprisonment for a period not exceeding (two years), or a fine not exceeding (three million) Riyals, or both."

Top tips for NDMO compliance

1. Conduct a data audit

The modern data landscape is incredibly complex, making it crucial to understand where your data is and what it's doing. Auditing your existing data technologies and storage systems is the first step, followed by data classification and cataloging.

2. Cultural change

You must ensure that every team member is on board with the measures you put in place to adhere to the framework. Without training, this is impossible.

In addition to scheduling training sessions, you should look for other data governance resources to help create a course that works for your team and assign team members specific roles and responsibilities.

3. Evaluate cybersecurity provisions

The fundamental security infrastructure that operates across your organization also protects your data. To ensure the security of your data, you must verify that your overall cybersecurity strategy and provisions are adequate.

4. Onboard a data governance platform

Data governance is one of the cornerstones of the NDMO Standards. Getting this right has a significant impact downstream and ensures that compliance efforts are ongoing.

To that end, utilizing an end-to-end data governance platform is critical in ensuring compliance.

Related Case Study: Saudi Agency Implements Regulatory Compliance and Strategic Governance with OvalEdge

FAQs

Here are some frequently asked questions that you can include in your blog post to address common queries regarding NDMO compliance:

1. What is the NDMO standard, and why is it important?

   The NDMO Data Management and Personal Data Protection Standards Framework is a regulatory framework set by the Saudi government to ensure the effective management, protection, and governance of government data. Compliance with NDMO standards is essential for public and private entities that manage, store, or process government data.

2. Who needs to comply with NDMO regulations?

   Public sector organizations like ministries, regulatory bodies, and government agencies, as well as private sector businesses handling government data, must comply with the NDMO standard. This includes vendors and service providers working with government data.

3. What are the benefits of NDMO compliance?

   Legal compliance, enhanced data governance, operational efficiency, and competitive advantage are some of the main benefits. Additionally, complying with NDMO standards helps organizations mitigate risks and avoid costly penalties.

4. What are the penalties for not complying with NDMO standards?

   Non-compliance can result in financial penalties, legal actions, reputational damage, and operational disruptions. Businesses may also face suspension of licenses and other restrictions.

5. How can my organization ensure compliance with NDMO standards?

   To ensure compliance, organizations should implement robust data governance frameworks, data security practices, and regular audits to align with NDMO’s regulations. Consulting with legal and data privacy professionals may also help with the implementation of compliant systems.

6. Is there a deadline for compliance with the NDMO standard?

   While specific deadlines may vary based on organizational readiness, it is recommended that all entities involved with government data begin compliance processes as soon as possible to avoid potential penalties.

Conclusion

Ultimately, any company operating in KSA is responsible for ensuring that the data it handles complies with the territory's comprehensive data management and protection framework.

However, due to the vast scope and scale of data in most modern organizations, collating this information to ensure compliance is nearly impossible, especially on an ongoing basis.

That’s why data governance tools have become so important, enabling organizations to meet the demands and requirements of an ever-expanding list of global compliance regulations.

Contact us today to learn how we can help you secure and manage your data now and in the future.

Key takeaways

• Compliance with the NDMO Standards is mandatory for any public entity or company that handles government or personal data in KSA.
• A key component of the NDMO standards is that personal and government data remain within KSA's national borders.
• Companies must take strategic steps toward compliance, including data audits, classification systems, strong cybersecurity measures, and a data governance platform.
• Cultural and organizational changes are pivotal to ensuring compliance is met continuously.