Cross-Border Data Transfers from ADGM: ADGM Data Protection Regulations

For businesses established in the Abu Dhabi Global Market (ADGM), the cross-border transfer of personal data is a routine operational need — whether sharing employee records with a parent company overseas, engaging cloud service providers, or exchanging customer information with international partners. But these transfers carry significant legal risk if not managed correctly.

Under the ADGM Data Protection Regulations 2021 (the DPR 2021), cross-border data transfers from ADGM may only be sent outside where an adequate level of protection for that data is ensured. This article explains how the adequacy framework operates in practice, which countries are currently designated as adequate, and what steps businesses should take when transferring data to non-designated jurisdictions.

The Legal Framework: Article 41 of the DPR 2021

Article 41 of the DPR 2021 sets out the foundational rule: the transfer of personal data to a recipient located in a jurisdiction outside ADGM may only take place if the laws applicable to that recipient ensure an adequate level of protection for the specific personal data being transferred.

To give effect to this requirement, the Commissioner of Data Protection has adopted a decision designating all jurisdictions recognised by the European Commission as providing adequate protection. This approach — directly mirroring the EU adequacy framework — reflects ADGM’s deliberate alignment with internationally recognised data protection standards and its broader commitment to positioning itself as a trusted, GDPR-compatible financial centre.

The practical consequence is clear: if your intended recipient is based in a designated jurisdiction, the transfer can proceed without further safeguards. If not, you will need to implement one of the mechanisms discussed at section 3 below.

Designated Adequate Jurisdictions

The following jurisdictions have been designated as providing an adequate level of data protection for the purposes of the DPR 2021. Transfers to recipients in these countries can proceed without the need for additional contractual or organisational safeguards (subject to the specific conditions noted):

Region	Designated Jurisdictions
Asia	Japan, South Korea
Europe	Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faeroe Islands, Finland, France, Germany, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
Middle East	Dubai International Financial Centre (DIFC), Israel, Qatar Financial Centre (QFC)
Oceania	New Zealand
North America	Canada* (PIPEDA recipients), United States** (EU-US Data Privacy Framework participants)
South America	Argentina, Uruguay

Canada: Adequacy applies only where the recipient is subject to the Canadian Personal Information Protection and Electronic Documents Act (PIPEDA/PIPED Act). Transfers to Canadian entities that are not subject to PIPEDA — for example, certain non-commercial organisations — will require additional safeguards.

United States: Adequacy applies only to commercial organisations that have certified their participation in the EU-US Data Privacy Framework (DPF). Before transferring personal data to a US recipient, ADGM data exporters should verify that the recipient organisation is listed on the active DPF register maintained by the US Department of Commerce.

Practical Note: Even where a transfer is to a designated jurisdiction, data exporters should document the transfer in their records of processing activities and satisfy themselves that the specific data being transferred is protected under the applicable laws. Adequacy does not override the data minimisation, purpose limitation, or other core principles of the DPR 2021.

Transfers to Non-Designated Jurisdictions

Where the intended recipient is located in a jurisdiction not appearing in the table above — which includes major trading partners such as China, India, Singapore, the UAE mainland, and many others — the transfer can only proceed if one of the following safeguards under Article 42 of the DPR 2021 is in place, or a specific derogation applies.

Article 42 Safeguards

• Standard Contractual Clauses (SCCs): Contractual clauses approved by the Commissioner of Data Protection (or, given ADGM’s alignment with the GDPR framework, the EU SCCs as adapted) that impose equivalent data protection obligations on the data importer.
• Binding Corporate Rules (BCRs): Appropriate for intra-group transfers within a multinational organisation. BCRs must be approved by the Commissioner and provide enforceable rights for data subjects.
• Approved Codes of Conduct or Certification Mechanisms: Where the data importer has adhered to an approved code or obtained certification recognised under the DPR 2021.
• Contractual Clauses Agreed Between the Parties: In limited circumstances, bespoke contractual arrangements may be approved by the Commissioner on an ad hoc basis.

Derogations Under Article 42

Even without one of the above safeguards, transfers may be permissible on the basis of a derogation where, for example:

• The data subject has given explicit, informed consent to the transfer;
• The transfer is necessary for the performance of a contract between the data subject and the controller, or for pre-contractual steps taken at the data subject’s request;
• The transfer is necessary for important public interest reasons;
• The transfer is necessary to establish, exercise, or defend legal claims; or
• The transfer is necessary to protect the vital interests of the data subject where they are physically or legally incapable of giving consent.

Derogations should be treated as exceptions rather than routine mechanisms. Businesses that regularly transfer data to non-designated jurisdictions should implement a proper Article 42 safeguard rather than relying on derogations, which are intended to address genuinely exceptional circumstances.

Key Compliance Considerations

Businesses operating in ADGM should take the following practical steps to ensure their cross-border transfer practices are compliant:

Map Your Data Flows: Identify all outbound personal data transfers, including those to cloud service providers, processors, parent entities, and commercial counterparties. Many businesses are unaware of the full extent of their international transfers until they conduct a structured data flow mapping exercise.

Verify Recipient Jurisdiction Status: Before each transfer, confirm whether the recipient’s jurisdiction appears on the ADGM adequate jurisdictions list. For US and Canadian recipients, verify the specific conditions (DPF certification and PIPEDA coverage respectively).

Implement Appropriate Safeguards for Non-Adequate Destinations: For transfers to non-designated countries, put in place the relevant Article 42 mechanism before the transfer takes place — not after. Retrofitting safeguards after a transfer has occurred does not cure the original breach.

Maintain Comprehensive Records: Document all international transfers in your records of processing activities, including the legal basis relied upon, the categories of data transferred, and the safeguards in place. This documentation will be essential in the event of a regulatory inquiry.

Review Third-Party Agreements: Review data processing agreements and vendor contracts to ensure they contain appropriate transfer provisions and allocate compliance obligations correctly.

Our Data Protection & Privacy team advises ADGM-regulated entities, financial institutions, and multinational businesses on all aspects of cross-border data transfer compliance, including transfer impact assessments, implementation of Standard Contractual Clauses, Binding Corporate Rules applications, and ongoing DPR 2021 compliance programmes.

If you have concerns about your current transfer arrangements or are seeking to establish a new data processing relationship that involves cross-border transfers, please contact us to discuss how we can help.