Enhancing the digital ecosystem and boosting investment

Introduction 

Qatar is committed to bolstering its digital framework, as evidenced by its digital transformation initiatives. The country's third National Development Strategy (NDS3) provides a detailed plan for advancing its digital economy, focusing on AI and emerging technologies. Aiming to establish itself as a frontrunner in digital governance, Qatar intends to digitise 90% of its public services for citizens.

Qatar’s Digital Agenda 2030 (DA 2030) is in fact a key driver for the nation’s digital transformation and a key enabler for its economic progress. Under the DA’s digital economy objective, Qatar aims to accelerate growth and transform the state into a globally competitive, diversified and innovative digital economy. Cross-border digital exchange including cross border data flows and digital inclusion are identified as supporting factors for the achievement of this objective.

Moreover, Qatar’s Digital Centre of Excellence for data and emerging technologies aims to create a highly skilled workforce for a rapidly growing, diversifying and technologically advanced economy in line with the Qatar National Vision 2030. It drives several initiatives, including the development of a comprehensive national data governance and management framework, ensuring improved data availability and quality. 

However, these efforts establish the need for robust cybersecurity measures, compliance with data privacy regulations, and the integration of advanced technologies to ensure secure data transfer across borders and industries. As findings from our latest 27th CEO Survey- Qatar have indicated, despite the benefits of using GenAI, CEOs in Qatar are concerned about keeping data secure. 74% of survey respondents revealed that cybersecurity risks were front of mind, higher than the global average of 64%.

Championing data security in Qatar: Embracing progressive legislation for enhanced data transfer

In Qatar, data transfer and personal data protection are governed by Law No. 13 of 2016, known as the Personal Data Privacy Protection Law. This landmark legislation, the first of its kind in the GCC, aims to protect personal data within Qatar and lays down guidelines for its processing. The law applies to personal data processed electronically or prepared for electronic processing, as well as data processed through traditional methods in combination with electronic processing.

Key provisions of the law include prohibitions on controllers to make decisions or take measures which can restrict cross-border data flows, unless it contravenes the law's provisions or could significantly harm the data subject. 

Key aspects of the law include:

Cross-border data flow: The law defines ‘cross-border data flow' as accessing, viewing, retrieving, using, or storing personal data without the restrictions of the of state borders. 

Controllers and processors: The law defines the following roles for organisations when processing personal data:

• Controllers are natural or legal persons who determine how personal data may be processed and determine the purposes of such processing, and
•  Processors who process Personal Data for the controllers. 

Organisations processing personal data must ensure transparency, fairness, and respect for human dignity. There is no explicit requirement for organisations to register with any regulatory authority nor an obligation to appoint a data protection officer. However,controllers must ensure processors responsible for protecting personal data are appropriately trained and aware of their duties.

What are the solutions to strengthen data transfer systems?

Generally, national regulators can implement the following measures to enhance the safety and efficiency of data transfer processes:

1. Strengthening cybersecurity measures: Adopting comprehensive cybersecurity frameworks and imposing requirements on controllers to employ advanced security technologies to protect personal data. This includes controls relating to encryption requirements for certain types of personal data, access management, and regular system audits and vulnerability testing .

2. Implementing international data transfer protocols: Aligning with global standards and protocols for data transfer to ensure compliance and security. The relevant regulators can issue measures such as adequacy decisions, approved model standard contractual clauses or binding corporate rules , as well as encourage industry players to agree on codes of conducts for cross-borders data transfers.

3. Ensure the availability and competitiveness of digital infrastructure: This can be achieved by attracting continued investment in digital infrastructure and enhancing the connectivity ecosystem in Qatar generally, including the availability to cloud services providers and high-speed connectivity as crucial enablers supporting the technical and administrative safeguards during cross-border data transfers.

4. Compliance with regulatory framework: To keep up with the fast pace of digital landscape and evolving technologies, national regulators need to ensure that the data protection framework remains up-to-date, future-proof to enable the adoption of new technologies and capable of addressing evolving digital challenges.

From a compliance and best practices perspective, organisations can implement a number of technical and administrative measures within their organisations to ensure proper personal data handling and secure cross-border data transfers. Such measures can include the following:

• Data encryption: Encrypt data both in transit and at rest to safeguard personal data.

• Privacy by design and by default: Integrate privacy considerations into the design and implementation of systems, processes, and products from the outset.

• Local data centres and cloud services: Utilise cloud services and data centres within Qatar that comply with local privacy laws to maintain data sovereignty.

• Data minimisation: Collect only the necessary personal data required for specific purposes to reduce the risk of data breaches.

• Regular data privacy audits: Conduct periodic audits to ensure compliance with privacy laws and identify potential gaps.

• User consent management: Implement robust systems to manage user consents for data collection and processing, enhancing transparency and trust.

• Staff training and awareness: Educate employees on data protection best practices and legal requirements to ensure proper handling of personal data.

These measures, when properly implemented, can help navigate the regulatory landscape, ensuring compliance while fostering a secure environment for e-commerce growth and attracting investment in Qatar's digital economy.

For organisations, ensuring compliance with the Personal Data Privacy Protection Law involves understanding the specific conditions under which personal and sensitive data may be processed, its consent requirements, data breach notification requirements, and the obligations regarding cross-border data flow. Adopting robust data protection policies and procedures, conducting regular data protection impact assessments, and seeking permission for processing sensitive personal data are pivotal steps towards compliance.

Moreover, organisations can utilise professional services and guidance provided by entities, such as PwC Middle East, to assess their compliance maturity and implement best practices for data privacy and protection. By doing so, businesses can not only comply with local regulations but also enhance their data management practices in line with best practices, contributing to a secure and trustworthy digital environment in Qatar. 

Here are some ways to accomplish these goals effectively:

• Conducting a gap assessment and developing a roadmap: Gap Assessment helps organisations to understand the “current state” of their data privacy compliance. Roadmap is prepared based on identified gaps and includes prioritised recommendation in order to achieve compliance, in other words, “to be” state. 

• Conducting data protection Impact Assessments (DPIAs): DPIAs help organisations identify and mitigate data protection risks associated with projects or policies. By carrying out a DPIA, organisations can evaluate how data processing activities affect individuals' privacy and ensuring compliance with data protection regulations.

• Implementing privacy by design and by default guidelines: Privacy by design and by default involves embedding data protection principles into the design and operation of systems, products, and processes. Guidelines for implementing privacy by design and by default empower organisations to proactively address data privacy concerns, thereby cultivating trust among their customers.

• Following cybersecurity standards and best practices: organisations can embrace global cybersecurity standards like ISO/IEC 27001 to establish, implement, maintain and enhance their information security management systems (ISMS). Adhering to practices in cybersecurity also fortifies defences against data breaches and cyber threats.

• Utilising data governance frameworks: These outline an approach for managing data that aligns with business objectives ensuring data integrity, availability and security. They include rules, roles, duties and procedures that oversee the management of data assets.

• Cloud security and compliance: as cloud services become more popular, it is essential for organisations to utilise tools that offer insight into cloud environments, evaluate security postures, and ensure compliance with data residency and regulations.

• Services for legal updates and regulatory changes: staying informed about updates in data protection laws and regulations is vital. Subscription services or seeking advice from experts specialising in data privacy can assist organisations in staying current with changes and adapting their compliance strategies accordingly.

A vision for a digitised future - the journey towards 2030

Developing and enforcing a data protection framework which allows for safe and secure cross-border data flows is key to fostering the necessary trust in the digital economy. The advancement of digitalisation, e-commerce, and the shift towards a digital economy will depend on how effectively Qatar manages data protection and cross-border transfer challenges. Together with the relevant stakeholders, governments can address these challenges on a number of fronts: through attracting and ensuring strategic investments in Qatar’s digital infrastructure and services; updating and developing robust regulatory frameworks; and facilitation of cross-border data flows through international cooperation will enhance Qatar's digital ecosystem and accelerate digitalisation overall, supporting its vision for a digitised future and attracting more investment.