Decree Redefines the Rules of Public Tenders in Kuwait

Kuwait’s public tenders system has entered a new phase of reorganizing the rules governing public procurement and contracting, following the issuance of Law-Decree No. 94 of 2026 amending certain provisions of Law No. 49 of 2016 concerning public tenders. Published in the Official Gazette (Kuwait Today) on Sunday, September 27, 2026, the decree aims to simplify procedures, address difficulties and issues revealed by practical application, and enhance the flexibility of relevant authorities, thereby ensuring that tender procedures are executed swiftly, efficiently, transparently, and fairly.

The amendments bring direct changes to the landscape of government contracting. They raise the maximum value of contracts that public entities may conclude without the approval of the Central Tenders Board to one million Kuwaiti dinars, while prohibiting the fragmentation of a single contract to reduce its value and evade the Board’s jurisdiction. Additionally, small and medium-sized enterprises (SMEs) are granted preferential treatment in awarding contracts, provided their bids comply with specifications and requirements and their prices do not exceed 10% above the lowest acceptable bid.

In the oil sector, the decree assigns the Central Tenders Board jurisdiction over purchase contracts executed within Kuwait by the Kuwait Petroleum Corporation (KPC) and its wholly owned subsidiaries, where the contract value exceeds 20 million Kuwaiti dinars. Contracts below this threshold fall under the purview of the procurement committees within KPC and its subsidiaries. The decree allows for an increase in this threshold by Cabinet decision, based on a proposal from the Corporation’s Board of Directors. Furthermore, the decree exempts all oil-related operations from the provisions of the Tenders Law, regardless of their value, and adds a detailed definition of oil-related operations to the law.

The decree expands the scope of local content support. It obliges both foreign and local contractors to purchase at least 30% of the products listed in the Industrial Directory issued by the Public Authority for Industry. It also requires foreign contractors to subcontract at least 30% of the awarded contract works to local contractors, with 10% of that portion reserved for SMEs, in accordance with the regulations stipulated in the law.

The amendments also prohibit the use of local agents or commission agents in all contracting procedures, according to rules determined by the Cabinet. They mandate the separation of design works from construction works, unless the nature of the project requires otherwise. Additionally, the decree provides for the periodic re-evaluation of the classification of general contracting firms and the reorganization of the Appeals Committee for decisions issued by the Board of Directors of the Central Tenders Board.

The decree sets a seven-working-day deadline for filing appeals against Board decisions, starting from the date of publication of the decision or notification to the concerned parties, whichever is earlier. The Appeals Committee is required to adjudicate the appeal and issue a reasoned decision within a period not exceeding 30 days from the date of submission. The execution of procurement procedures may be suspended pending the resolution of the appeal.

Finally, the decree reorganizes the composition of the Central Tenders Board’s Board of Directors. It stipulates that the Board shall continue in its current composition at the time the decree enters into force until the expiration of its term, while the subsequent Board’s composition shall be subject to the new provisions. The Law-Decree shall enter into force three months after its publication in the Official Gazette.

The following is the full text of Law-Decree No. 94 of 2026 Amending Certain Provisions of Law No. (49) of 2016 Concerning Public Tenders:

– Having reviewed the Constitution,

– And the Emiri Decision issued on 2 Dhu al-Qi’dah 1445 AH (corresponding to 10 May 2024),

– And Emiri Decree-Law No. 12 of 1960 Concerning the Organization of the Administration of Fatwa and Legislation for the Government of Kuwait,

– And Law No. 30 of 1964 Establishing the Court of Audit, and its amendments,

– And Decree-Law No. 6 of 1980 Establishing the Kuwait Petroleum Corporation, and its amendments,

– And the Commercial Law issued by Decree-Law No. 68 of 1980, and its amendments,

– And Law No. 56 of 1996 Concerning the Issuance of the Industrial Law, as amended by Law No. 124 of 2023,

– And Law No. 98 of 2013 Concerning the National Fund for the Care and Development of Small and Medium Enterprises, and its amendments,

– And Law No. 116 of 2013 Concerning the Encouragement of Direct Investment in the State of Kuwait,

– And the Companies Law issued by Law No. 1 of 2016, and its amendments,

– And Law No. 33 of 2016 Concerning the Kuwait Municipality, and its amendments,

– And Law No. 49 of 2016 Concerning Public Tenders, and its amendments,

– And Law-Decree No. 144 of 2025 Issuing the Unified Industrial Regulation Law for the Cooperation Council for the Arab States of the Gulf,

– And Law-Decree No. 84 of 2024 Concerning Ministerial Solutions and Appointments, and its amendments,

– And upon the proposal of the Minister of Finance,

– And after approval by the Council of Ministers,

We have issued the following Decree-Law:

Article One

The following provisions shall replace the provisions of Articles (2/Third/Clause 3, 5, 19/Clause First, 26, 31, 39/Clauses 1 and 2, 41/Second Paragraph, 49/Second Paragraph, 62, 62 bis, 78, 87) of the aforementioned Law No. 49 of 2016:

Article (2/Third/Clause 3)

3. The Kuwait Petroleum Corporation and its wholly-owned subsidiaries:

With regard to procurement cases concerning (supplies – contracts – services), the Authority shall be competent for procurement contracts executed within the State of Kuwait with a value exceeding twenty million Kuwaiti Dinars, in accordance with the provisions of this Law. Procurement committees shall be formed within the Kuwait Petroleum Corporation and its wholly-owned subsidiaries, competent for contracts with values less than that amount. The minutes of the procurement contracts conducted by these committees shall be referred to both the Authority, the Court of Audit, and the Ministry of Finance. Furthermore, these committees shall be responsible for establishing special conditions to facilitate the qualification of small and medium-sized enterprises, in coordination with the National Fund for the Care and Development of Small and Medium Enterprises.

The threshold mentioned in the preceding paragraph may be increased by a decision of the Council of Ministers, upon the proposal of the Board of Directors of the Kuwait Petroleum Corporation.

Subject to the provisions of Article (152) of the Constitution, all oil operations, regardless of their value, are exempt from the provisions of this Law.

The procurement committees referred to herein shall conduct their activities, and appeals against their decisions shall be handled, in accordance with the rules, procedures, and fees approved by the Board of Directors of the Kuwait Petroleum Corporation, adhering to the principles of transparency, disclosure, commitment, governance, fairness, equal opportunity, and avoidance of conflicts of interest, with the aim of the optimal utilization of the funds of the Kuwait Petroleum Corporation and its wholly-owned subsidiaries. The provisions of this Law shall apply only to matters not covered by these rules and procedures, and in a manner that does not conflict with them.

The Supreme Petroleum Council has the authority to authorize the Authority or one of its wholly owned subsidiaries to purchase or import items, or to instruct contractors to carry out works urgently, due to the nature of the required materials or works, or because of urgent or emergency circumstances, in accordance with the rules and procedures it determines, without being bound by any existing rules or procedures. The Chairman of the Authority’s Board of Directors shall notify the Supreme Petroleum Council of contracts concluded under this provision at the first subsequent meeting.

Article (5)

The Board of Directors of the Authority shall consist of:

A – Seven members appointed by decree upon the nomination of the competent Minister and with the approval of the Council of Ministers, for a non-renewable term of four years. Among them, a full-time Chairman and a full-time Vice-Chairman shall be designated. The term of office of three members of the Board formed for the first time shall expire after two years from the date of appointment, excluding the Chairman and Vice-Chairman. A decree shall be issued renewing the membership of those whose terms expire and appointing their replacements for a period of four years. The Council of Ministers shall determine their allowances, and their dismissal shall be by decree upon the proposal of the competent Minister.

Members must be Kuwaiti citizens of integrity, possessing expertise and specialization in engineering, judicial, medical, and economic affairs, as well as in fields related to the Authority’s work. No person shall be eligible if a final judgment has been rendered against them for bankruptcy, or if they have been convicted of a felony or a crime involving moral turpitude or breach of trust.

B – A representative of the Office of Legal Opinions and Legislation.

C – A representative of the Ministry of Finance.

D – A representative of the government entity responsible for overseeing the implementation of the tender, who shall not have voting rights.

The selection of representatives from the entities mentioned in clauses (B), (C), and (D) shall be rotational, with a maximum term of two years for each representative.

The Board of Directors may avail itself of the expertise of individuals it deems suitable, whether from the concerned entity or from elsewhere, to clarify any matters directly related to its competencies. Such experts shall not have voting rights.

Article (19/ Clause One)

First: Public entities subject to the provisions of this Law may contract for any purpose stipulated herein, without the Authority’s approval, through appropriate methods in accordance with circulars issued by the Ministry of Finance, based on the needs of the concerned entity, provided that the contract value does not exceed 1,000,000/- Kuwaiti Dinars.

Contracts concluded under this provision for the same items or works shall not exceed this threshold during the fiscal year.

These entities may cooperate with the Procurement Systems Administration in this regard, in accordance with the rules and systems of centralized procurement administered by the said Administration.

In applying the provisions of the preceding paragraph, a single contract shall not be split into multiple contracts with the intent of reducing its value below the threshold subject to the Authority’s jurisdiction. The concerned entity shall provide the Ministry of Finance with periodic reports every six months detailing contracts concluded within the aforementioned threshold.

The Council of Ministers shall review, by decision, any increase or decrease in the value of the aforementioned contract, based on a recommendation from the Authority.

Article (26)

The Classification Committee shall classify general contracting contractors into four categories based on their financial and technical capabilities. The Authority shall establish special conditions to facilitate the entry of small and medium-sized project owners into the fourth category.

The classification shall be periodically reassessed in accordance with the bases and criteria established by the Classification Committee.

The Executive Regulations of this Law shall specify the deadlines and procedures for submitting registration and classification applications, the conditions for each, the classification categories, the review process, and the deadlines and procedures for appealing decisions issued regarding them.

The classification does not replace the qualification procedures for bidders, and the relevant authority must undertake these procedures to ensure that bidders are qualified to execute the contract.

Article (31)

Subject to Law No. (1) of 2016 and Law No. (116) of 2013, referred to above, and as provided by relevant international agreements, the following conditions shall apply to any party submitting a bid in open or limited tenders, or in cases of direct contracting and direct procurement:

First: The bidder must be an individual or a company registered in the Commercial Register.

Second: The bidder must be registered in the register of suppliers or contractors, depending on the nature of the tender, direct contracting, or direct procurement.

The Executive Regulations shall specify the conditions and controls for the participation of small and medium-sized enterprise owners in procurement processes governed by the provisions of this Law.

Article (39)

1. Before offering supplies or construction works in an open tender, and after preparing final designs and separating design works from construction works, unless the nature of the works dictates otherwise, the relevant authority shall prepare the tender documents and provide detailed specifications for each item or each work, the scope of the procurement, the specified time and place for contract execution, and the criteria for evaluating bids. It shall also issue necessary instructions to contractors, along with drawings and detailed bills of quantities indicating item breakdowns and price schedules. In doing so, international standard specifications and government supply specifications shall be observed.

2. The Executive Regulations shall determine the cases in which fees are charged for providing tender documents to interested parties.

Article (41, Paragraph Two)

The Council may appoint any suitable person within the Authority to examine samples from a technical perspective regarding submitted bids, to verify their compliance with the announced conditions, and to confirm the availability of technical sufficiency conditions. The Council may seek the opinion of experts it deems appropriate, and specialists shall submit reports on their research findings and recommendations to the Council.

Article (49, Paragraph Two)

The envelopes shall be returned to the Authority, and the Council may appoint any suitable person within the Authority to provide an opinion when required. Financial envelopes for these bids shall not be opened until the technical recommendation regarding them is received. Financial envelopes for bids that are technically unacceptable shall be returned to their owners unopened.

Article (62)

Subject to international and regional agreements ratified by the State of Kuwait, the Council of Ministers shall determine the competent Minister or the relevant public authority responsible for issuing a decision regarding the regulation of provisions for products granted priority in public sector procurements.

Article (62 bis)

The Council or the competent procurement authority shall award contracts to bids submitted by small and medium-sized enterprise owners, provided they comply with specifications and conditions, and the submitted prices do not exceed 10% of the lowest acceptable bid.

A bidder shall not combine the priority granted to products under the provisions of Article (62) with the award priority granted under the preceding paragraph in the same tender. In such cases, the Council shall determine the award based on whichever consideration it deems appropriate.

Article (78)

A Committee for Appeals against Council decisions shall be established, attached to the Council of Ministers. It shall consist of five members who are specialized legal, financial, and technical experts. Their appointment shall be issued by Decree, based on the nomination of the competent Minister, for a non-renewable term of three years.

Any interested party may appeal to the Appeals Committee against Council decisions within seven working days from the date of their publication or notification to the interested parties, whichever is earlier.

The Authority shall provide the Committee with documents and information related to the appeal submitted to the Committee immediately upon request.

The Committee shall examine the appeal submitted to it, rule on it, and issue a reasoned decision, without taking any tendering measures, within a period not exceeding thirty days from the date of submission of the appeal. In the event the appeal is accepted, the documents shall be returned to the Council to complete the procedures and its affairs in accordance with the authority prescribed by law, taking into account the Committee’s decision, and the Agency shall be notified thereof for implementation.

The Executive Regulations shall govern the rules and procedures for the Committee’s work, the submission and examination of appeals, ruling on them, and notifying the appellant and the Agency of its decision, as well as the cases for refunding appeal fees. In all cases, the Committee may suspend the procurement process pending the resolution of the appeal.

Article 87

Subject to the legal provisions regarding direct investment of foreign capital, the concerned authority shall monitor compliance by the foreign or local contractor with the obligation to purchase no less than 30% of the products listed in the Industrial Catalog issued by the Public Authority for Industry.

If such products are unavailable, they may be purchased from local suppliers registered in the Agency’s supplier lists, provided that this is evidenced by official receipts from the entities from which the purchases were made.

Furthermore, the concerned authority shall monitor compliance by the foreign contractor with the obligation to assign no less than 30% of the contract works awarded to it to local contractors registered in the Agency’s contractor classification lists across various categories. Of this percentage, 10% shall be allocated to owners of small and medium-sized enterprises, according to the nature of the contract or contractors registered and classified with the Kuwait Municipality or the Kuwait Petroleum Corporation and its subsidiaries, subject to obtaining approval from the authority supervising the contract execution. This percentage may be increased or decreased by a Cabinet decision upon the Agency’s proposal.

Article Two

The following definition is added to Article (1) of Law No. 49 of 2016, referred to above:

“Oil Operations: All technical processes related to the exploration, production, processing, and export of oil and gas, including in particular all processes and stages necessary for the exploration and prospecting of oil and gas, field development, drilling and maintenance of hydrocarbon wells, production of hydrocarbon materials, and processing, storage, transportation, loading, shipping, sale, and purchase of oil and gas, their derivatives, chemical materials, petrochemical products and their derivatives and extracts, including all operational and specialized services related thereto.”

Article Three

1. Article (7) of Law No. 49 of 2016, referred to above, is repealed.

2. Any provision in other legislations that conflicts with the provisions of the last paragraph of Article (31), as replaced by this Law-Decree, is also repealed.

3. The provisions of Article One of this Law-Decree shall not apply to procurement processes announced prior to its entry into force, except for Articles No. (62) and (62 bis).

Article Four

The Board of Directors of the Central Authority for Public Tenders shall continue in its current composition upon the entry into force of this Law-Decree until the expiration of its term. The composition of the succeeding Board shall be subject to the provisions of Article (5), as replaced by Article One of this Law-Decree.

Article Five

The Ministers shall each, within their respective competencies, implement this Law-Decree. It shall enter into force three months after its publication in the Official Gazette.

Explanatory Memorandum

Law-Decree No. 94 of 2026 Amending Certain Provisions of Law No. 49 of 2016 Concerning Public Tenders

Law No. 49 of 2016 Concerning Public Tenders was issued with the aim of regulating procurement and tendering processes conducted by government entities, within a framework of transparency, equality, and equal opportunity among competitors, in accordance with the prescribed provisions.

However, the practical application of certain provisions of the aforementioned Public Tenders Law revealed a number of practical difficulties and issues, which had negative repercussions on the implementation of the law as intended.

In light of the foregoing, and given that the Emiri Order dated 10/5/2024 stipulated in Article (4) that laws shall be issued by decree-laws, a decree-law consisting of five articles was prepared. This decree aims to simplify procedures, address the difficulties and issues arising from practical realities, and enhance the flexibility of relevant entities in dealing with practical circumstances, thereby serving the interests of the work and ensuring that public tender procedures are executed with speed, efficiency, transparency, and fairness.

Article One of the decree-law addressed the replacement of certain articles of the aforementioned Law No. 49 of 2016, as follows:

Article (2/Thirdly), Item (3) was amended by raising the financial threshold for contracts under the purview of the Purchasing Committees of the Kuwait Petroleum Corporation (KPC) and its wholly-owned subsidiaries. This threshold may be further increased by a Cabinet decision, upon the proposal of the KPC Board of Directors.

Furthermore, the Purchasing Unit at KPC and its wholly-owned subsidiaries was replaced by Purchasing Committees. These committees shall conduct their work in accordance with the rules and procedures approved by the KPC Board of Directors. The amendment also mandated that these rules and procedures adhere to the principles of transparency, disclosure, compliance, governance, fairness, equal opportunity, and avoidance of conflicts of interest. A new provision was introduced stipulating that the provisions of the Public Tenders Law shall apply only to matters not covered by those rules and procedures, and in a manner consistent with them.

Additionally, the amendment authorized the Supreme Council of Petroleum to permit KPC or one of its wholly-owned subsidiaries to urgently purchase or import items, or to instruct contractors to carry out works on an urgent basis. Article No. (5) was also amended regarding the formation of the Board of Directors of the Authority. The membership of representatives from the State Planning Authority, the Public Authority for Manpower, the Public Authority for Persons with Disabilities, and the Public Authority for Small and Medium Enterprises Development was abolished. Furthermore, Item (d) of the same article, concerning the representative of the government entity responsible for supervising the tender execution, was amended to specify that their participation in the Authority’s Board of Directors shall be without voting rights.

Item (Firstly) of Article No. (19) was also amended to raise the maximum contract value that public entities may conclude without the Authority’s approval to 1 million Kuwaiti Dinars. This value shall be reviewed by a Cabinet decision whenever necessary, either by increase or decrease, based on a recommendation from the Authority’s Board. The reference to coordination with the National Fund for the Care and Development of Small and Medium Enterprises, previously included in this article, was deleted.

Article No. (26), concerning the classification of general contracting contractors, was amended by adding a provision requiring the periodic re-evaluation of classifications according to the bases and criteria established by the Classification Committee.

Article No. (31) prohibited the use of local agents or commission agents in all contracting procedures, in accordance with the rules approved by the Cabinet, upon the proposal of the competent Minister, after coordination with relevant entities.

The amendment also addressed Items (1, 2) of Article No. (39) by separating design works from construction works. It permitted, on an exceptional basis, combining both types of works when the nature of the works so required. Additionally, the exemption of small and medium enterprise owners from tender document fees was abolished.

Articles 41 (Paragraph 2) and 49 (Paragraph 2) were also amended by replacing the phrase “whichever he deems appropriate” with “the technical sector.”

Amendment was also made to Article 62, vesting the authority to determine products granted priority in procurement processes in the Council of Ministers, upon the proposal of the Minister responsible for economic and industrial policies or the relevant public authority, to issue a decision specifying the products granted priority in government procurement.

The amendment further covered Article 62 bis, stipulating that the tender be awarded to owners of small and medium-sized enterprises, provided they meet the required conditions and specifications, and the prices offered do not exceed 10% of the lowest accepted bid. It also prohibited combining the priority granted to products under Article 62 bis with the priority granted under Article 62 in the same tender. The executive regulations shall specify the conditions and controls for the participation of small and medium-sized enterprise owners in procurement processes.

Article 78 was amended to reorganize the Appeals Committee, with the executive regulations detailing the committee’s rules and procedures for work, submission, review, and adjudication of appeals, notification of the appellant and the authority of its decision, and cases of refunding appeal fees. In all cases, the Committee may suspend procurement procedures until a decision is rendered on the appeal.

Article 87 was amended to oblige contractors to purchase no less than 30% of the products listed in the Industrial Catalog issued by the General Authority for Industry.

Article 2 of the Decree-Law added a definition of oil operations, while Article 3 repealed Article 7 concerning the technical sector, and abolished any provision conflicting with the final paragraph of Article 31, as replaced by this Decree-Law, in other legislations. The provisions of Article 1 of this Decree-Law shall not apply to procurement processes announced prior to its entry into force, except for Articles 62 and 62 bis.

Article 4 of the Decree-Law added a provision stipulating that the Board of Directors of the Central Authority for Public Tenders shall continue in its existing composition at the time of the Decree-Law’s entry into force until the expiration of its term, and that the subsequent composition of the Board shall be subject to the provisions of Article 5, as replaced by Article 1 of this Decree-Law.

Finally, Article 5 of the Decree-Law obligated the Ministers, each within their respective competence, to implement its provisions, with effect to be given three months after its publication in the Official Gazette.