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New data protection regime of UAE

Federal Decree law no. 45 of 2021 aims to create a framework for appropriate data protection to ensure confidentiality and privacy of individuals and organizations in line with international standards and best practice principles. This new legislation is brought as part of unprecedented legal reform in advance to the golden jubilee of United Arab Emirates-UAE.  The federal law shall follow with the executive regulations and Detailed guidelines for the implementation of date protection. The law shall apply for i) individuals who has residence and organizations who have place of business in UAE ii) locally established businesses that process data of data subjects located in or outside the UAE, and iii) any businesses outside the UAE that process personal data of individuals inside the UAE.

Federal data protection law shall not be applicable to DIFC and ADGM where there is Special law on place on data protection. Also, the banking, credit and health sectors are exempted as those sectors regulated by separate data protection regulations.

UAE Data Office will be established under the separate statute to implement and monitor the implementation of data protection law. The main tasks of this new laws are as follows,

  1. To ensure the fair, transparent and lawful use of data, collection of data, Management and administration of data and keep the data correct, accurate and updated.
  2. The requirement to obtain the clear, simple, and unambiguous consent of data subject except in limited situations and the opt out option for use of data for marketing purpose
  3. Rights of data subjects in respect of personal data, right to access the personal data, information in relation to the processing of personal data, correction, and erasure of personal data, restrict and object the processing of personal data.
  4. Regulation and restriction on the transfer of data outside UAE and instances of consent from data subject and permission from data office.
  5. Data protection officer, records of processing activities and impact assessment.

The law came to force on 2 January 2022 and the executive regulations are expected anytime and the applicable organizations shall have six-month time to comply with the mandates of law. 

The law is silent about the penalty for breach of the law; however, the data office will have power to act upon in accordance with the executive regulations expected anytime.

The law is not anyway intending to create over burden for the organizations operating within the jurisdiction but to allow the seamless cross boarder transfer of data for international companies in UAE at the low-cost compliance by ensuring the SMEs are not overburdened.

At this stage, the organizations should prepare for data mapping exercises to identify the data subjects and revisit the existing contracts over the specific clauses on data protection and consent language.

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