Saudi Arabia: Vehicle Insurance Violations Now Being Monitored Electronically

Saudi Gazette, 1 October 2023: Saudi Arabia’s General Traffic Department has announced vehicle insurance violations are now being monitored.

Violations will be committed where the owners of vehicles don’t have valid insurance.

Violations will be monitored every 15 days across the Kingdom.

Owners of vehicles without valid insurance will be fined between 100 and 150 Riyals.

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Saudi Arabia: Final Version of Artificial Intelligence Principles Approved

Saudi Arabia’s Data and Artificial Intelligence Authority has announced it has approved the final version of the Artificial Intelligence Principles. They made the announcement via social media.

The Authority has analysed global practices and standards to develop these Principles. They are designed to help entities adopt standards and ethics when building and developing Artificial Intelligence-based solutions to ensure their responsible use and protect the privacy of data subjects and their rights with respect to the collection and processing of their data.

It will apply to all Artificial Intelligence stakeholders designing, developing, deploying, implementing, using, or being affected by Artificial Intelligence systems in the Kingdom. This will include public entities, private entities, non-profit entities, researchers, public services, institutions, civil society organisations, individuals, employees and consumers.

The Principles cover Fairness, Privacy and Security, Humanity, Social and Environmental Benefits, Reliability and Safety and Transparency and Explainability and Accountability and Responsibility.

The final version has introduced a new Artificial Risks section. This outlines the categories of risks associated with the use of Artificial Intelligence. There are four categories. These are little or no risk where no restrictions will be placed on Artificial Intelligence provided those systems are ethically compliant. There is also a limited risk category where Artificial Intelligence systems will be subject to the Principles. In addition, there is a high-risk category. Artificial Intelligence systems must undergo pre- and post-conformity assessments, consider the relevant statutory requirements and comply with Artificial Intelligence ethics in this category. Finally, there is an unacceptable risk category. These Artificial Intelligence systems cause harm to people’s safety, livelihood and rights are not allowed.

The new Principles also state Principle 5 on Reliability and Safety, in deployment and monitoring will be adopted. This means continuous monitoring is required to assess the alignment of an Artificial Intelligence model’s operations with its design and frameworks while ensuring the system’s safety to prevent malicious exploitation of data and results that could harm entities or individuals. Ongoing implementation and development efforts are necessary to maintain the system’s reliability over time.

The Authority is responsible for reviewing and updating the Artificial Intelligence ethics principles and monitor compliance with them. It will also develop the necessary national guides, standards and directives to ensure the effective management of Artificial Intelligence and ensure the goals are met.

The latest version includes Optional Registration as well. The aim is to encourage relevant entities to adopt Artificial Intelligence ethics when developing these systems.

Motivational Badges have also been added. This means the Authority may grant entities implementing the principles motivational badges that reflect the level of compliance and progress on Artificial Intelligence ethics implementation.

Finally, as part of the Artificial Intelligence Ethics tools, particularly privacy and security standards, the ISO 23894 risk standard has been explicitly defined along with the standards issued by the Saudi Standards and Metrology Organisation. ISO 23894 provides guidance on how organisations that develop, produce, deploy or use products, systems, and services deploying Artificial Intelligence can handle Artificial Intelligence risks. In addition, the final version has introduced additional data protection methods like data loss prevention, data governance and data minimisation.

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Saudi Arabia: Implementing Regulations to Data Protection Law Published

Saudi Arabia’s Authority for Data and Artificial Intelligence has published the Implementing Regulations to the Data Protection Law (Saudi Arabia Cabinet Decision No. 98/1443). Saudi Arabia Administrative Decision No. 1516/1445 will come into force on 14 September 2023.

The published regulations have omitted the definition of secondary use but not the concept of secondary processing and its having special requirements. They have also omitted the legal basis requirement for exercising rights.

In addition, they have omitted Article 33 on the transfer or disclosure of data to an entity outside of the Kingdom and Article 3 on the legal basis for processing. Finally, pseudonymisation will now be known as coding.

They will be published in the Official Gazette.

They have also published Regulations on cross-border transfers. Under Saudi Arabia Administrative Decision No. 1517/1445, controllers should check and ensure there are appropriate conditions that allow the transfer or disclosure outside Saudi Arabia and provide adequate protection to the personal data and the data subject’s rights.

They must limit the transfer or disclosure of personal data outside Saudi Arabia to the minimum necessary to achieve the transfer or disclosure purpose. This will be determined using data maps which indicate the need to transfer or disclose each piece of data and link it to each processing purpose outside the country. The requirements also apply to metadata, operational data, backup data, monitoring systems data, support data and data derived from personal data which directly or indirectly identifies a data subject.

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Saudi Arabia: Labour Law Penalties Regime Amended

Gulf News (United Arab Emirates), 3 September 2023: Saudi Arabia’s Human Resources and Social Development Ministry has announced a raft of amendments to labour law penalties in the Kingdom. The fines will be imposed based on the category of the establishment. Categories are now determined by the total number of employees.

Category A includes entities with more than 50 employees, Category B is designated for those with 21 to 49 employees and Category C encompasses establishments with one to 20 employees.

In terms of employers who fail to comply with Saudisation quotas or employ non-Saudis in roles reserved for Saudi nationals, offenders in Category A will be fined 8,000 Riyals, offenders in Category B 4,000 Riyals and offenders in Category C 2,000 Riyals.

When it comes to non-compliance with protection, safety, and occupational health standards, the penalties have also been amended. Offenders in Category A will be fined 5,000 Riyals instead of 10,000 Riyals, offenders in Category B 2,500 instead of 5,000 Riyals, and offenders in Category C between 1,500 instead of 2,500 Riyals.

The penalties for those who do not establish appropriate safety guidelines have also been amended. Offenders in Category A will be fined 1,000 Riyals instead of 5,000 Riyals. Offenders in Category B will be fined 500 Riyals instead of 2,000 Riyals and offenders in Category C 300 Riyals from 1,000 to 300.

Those who employ workers under extreme weather conditions without necessary safety measures will be fined 1,000 Riyals, regardless of the category they are in. Entities who fail to provide medical insurance to employees and their families will be fined 1,000 Riyals if they are in Category A, 500 Riyals if they are in Category B, and 300 Riyals if they are in Category C.

Those who employ minors will be fined 2,000 Riyals if they are in Category A. Employers who hire women within six weeks after childbirth will be fined 1,000 Riyals.

Category A establishments who employ Saudis in roles reserved exclusively for them will be fined 1,000 Riyals. Offenders in Category B will be fined 5,000 Riyals and offenders in Category C 2,500 Riyals. Entities who misrepresent data to the Ministry will be fined 3,000 Riyals instead of 20,000 Riyals.

Category A entities who carry out discriminatory hiring practices will be fined 3,000 Riyals, while those in Category B who commit the offence will be fined 2,000 Riyals and offenders in Category C 1,000 Riyals. Establishments not paying salaries in the official currency within the stipulated timeframe will be fined 300 Riyals.

Also reported in Al Madina on 23 August 2023. Read the full story here.

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Saudi Arabia: Passenger Rights Protection Regulations Approved

Khaleej Times (UAE), 24 August 2023: Saudi Arabia’s General Authority of Civil Aviation (GACA) has announced it has approved new passenger rights protection regulations. The regulations have been issued to strengthen the protections for travellers where there are airline or airport disruptions.

They will come into force on 20 November and cover ticketing, boarding, in-flight services, baggage handling, and helping passengers with special needs, including those with reduced mobility.

Under the changes, compensation provisions have been strengthened and extended. Compensation of between 150 and 200% of the original ticket value could be awarded for flight delays, cancellations, overbooking and unexpected stopovers.

For lost or damaged baggage, travellers could be compensated with approximately 6,568 Saudi Riyals. There are also provisions for unique travel circumstances like the Haj and Umrah pilgrimage.

In these cases, passengers will be able to request the termination of the contract with the air carrier where the flight is delayed for more than two hours.

Also reported in Al Madina on 23 August 2023. Read the full story here.

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Saudi Arabia: Implementing Regulations to Audio-Visual Law Amended

Okaz, 15 August 2023: Amendments to the Implementing Regulations to the Audio-Visual Law have been approved. The amendments confirm the prohibition of displaying content that encourages, promotes or leads to violence, intimidation, witchcraft or sorcery.

The amendments urge adherence to the principles of objectivity, honesty, accuracy, confidentiality of information and fairness in dealing with various topics.

It also urges professional standards and practices related to the media in broadcasting news, services, and advertisements to be complied with.

The amendments state the content must not violate the Kingdom’s principles and must not call for violence, or glorify groups with destructive political, ethnic, economic, financial, ideological or social tendencies.

It must not violate the rights of women or children and not prejudice the dignity of people and their private lives or belittle or offend them either.

Read the full story here.

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Saudi Arabia: Companies Must Disclose Training Information

Arab News, 19 August 2023: Saudi Arabia’s Human Resources and Social Development Minister has issued a Decision requiring companies with more than 50 employees to disclose their training information.

This information will have to include hours and trainee counts, training plans, activity reports, trainee numbers and budget allocation for the next year.

The information will help the Ministry assess training indicators in the job market and work with the private sector to improve training programmes for employees. The Decision has been issued to improve training in private sector companies as well as improve workforce capabilities and promote development and growth opportunities.

In addition, it aims to improve performance and productivity and support the national programme to incentivise private sector training for job market readiness.

Also reported in Albilad Daily on 19 August 2023. Read the full story here.

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Saudi Arabia: Ministry Urges Companies to Submit Financial Results Electronically

Okaz, 16 August 2023: Saudi Arabia’s Commerce Ministry has urged companies to prepare and deposit their financial statements electronically via the Quaem platform to avoid violating the provisions of the Companies Law (Saudi Arabia Cabinet Decision No. 678/1443).

The Ministry stated that simple companies, simple joint-stock companies, limited liability companies, partnerships, and simple recommendations must prepare financial statements at the end of each fiscal year in line with the accounting standards approved in the Kingdom.

They should then deposit them within six months of the end of the fiscal year in line with Article 17 of Saudi Arabia Cabinet Decision No. 678/1443 (the new Companies Law).

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