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Page last updated on Friday, November 18 2005 at 1815 UK

Dubai Financial Service Authority to Protect Personal Data

The Dubai Financial Service Authority has formulated new data protection legislation to take effect inside the Dubai International Finance Centre

Dubai Financial Service Authority to Protect Personal Data

Until now, companies looking to establish a presence in the United Arab Emirates (UAE) have been deterred by the absence of formal data protection legislation. It has long been a concern of such multinationals that individuals' personal data may not be adequately protected once transferred to the UAE.

This situation now looks set to change, at least within the confines of the new Dubai International Finance Centre (DIFC). The Dubai Financial Service Authority (DFSA) has issued legislation which governs the handling and transfer of information "relating to an identifiable natural person".

This is likely to appeal to companies who have previously cited data protection issues as a barrier to establishing operations in the UAE. Whilst move underlines the commitment of Sheik Mohammed bin Rashid Al Maktoum (Dubai Crown Prince) to transparency and good governance, the new legislation will only apply to the DIFC.

The new rules require that a permit be obtained from the DFSA in situations where either:

  1. sensitive personal data is being processed - this is defined as information which could reveal a person's racial or ethnic origin, political opinion, religious or philosophical beliefs, trade-union membership, health of sex life;
  2. or data is being transferred to a jurisdiction which does not provide adequate protection.

In the latter case, the definitions of transfer and adequate protection closely resemble the wording of Article 56 of the EU Directive 95/46/EC (October 24th 1995) on the protection of individuals with regard to the processing of personal data and on the free movement of such data.

Even where neither of the above situations is applicable, Article 4.1 of the new legislation sets out some basic requirements for the handling of non-sensitive personal data.

The new rules apply only within the jurisdiction of the DIFC. The remainder of the UAE continues to rely on the principles contained in the Constitution and Penal Code to guarantee privacy.

The consolidated text of the Data Protection Law 2004 (DIFC Law No. 9 of 2004) is available here. More information can be found by visiting the website of the DFSA at www.dfsa.ae


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