Tenders Authority: Project Awards Exceed 1 Billion Dinars in the First Half of 2026

Kuwait is witnessing a noticeable acceleration in the pace of awarding government and oil projects, alongside the efforts of relevant authorities to proceed with the implementation of a package of developmental and service projects. This aims to enhance the role of capital expenditure in supporting economic activity and stimulating the contracting, services, supply, and other sectors, while also improving the efficiency of infrastructure and public facilities.

Semi-annual data from the Central Tenders Board for 2026 reflects the growing volume of work and projects that have entered the tendering and awarding stages, indicating a shift of several projects from the planning and procedural phases to actual implementation. This supports the economic cycle and strengthens the contribution of government projects to local activity.

The Central Tenders Board announced in its semi-annual statistics for the period from the beginning of January to the end of June 2026 that it held 54 meetings to discuss topics related to finalizing tender procedures, submitting requests, opening envelopes, and making awards, as well as other services related to public tenders.

The board clarified that the number of tender requests related to projects by government entities and the oil sector reached 91,191 requests, with related procedures continuing according to the stages defined for each project. According to the data, the number of tenders and practices awarded during the period totaled 154, with a total value of approximately 1.07 billion dinars, compared to an estimated value for these tenders and practices of approximately 1.19 billion dinars.

The awarding processes resulted in total savings of 120.3 million dinars compared to the estimated value, reflecting the difference between the estimated costs of the projects and the values on which they were awarded.

The value of awards was distributed between the oil sector and government entities and authorities. The value of awards for oil sector projects reached approximately 475.1 million dinars through four tenders, while the value of awards for government entities and authorities reached 596.28 million dinars, distributed across 150 tenders and practices.

The Ministry of Electricity, Water, and Renewable Energy topped the list of government entities in terms of the value of awarded tenders and practices, with a value of 430.4 million dinars through 35 tenders and practices. The General Administration of Civil Aviation came in second place with award values of 35.4 million dinars through five tenders and practices, while the Ministry of Public Works came third with a value of 16.53 million dinars through seven tenders and practices.

At the level of the oil sector, Kuwait Oil Company topped the list of entities in terms of the value of awarded tenders, with a total of 461.48 million dinars through three tenders. Kuwait National Petroleum Company came in second place with award values of 12.68 million dinars for one tender. These figures indicate that the majority of the value of oil awards during the first half of the year was concentrated in Kuwait Oil Company projects, reflecting the scale of projects and work related to the oil sector during the period.

According to the classification of projects by government entities and the oil sector, electrical and mechanical works ranked first in terms of the number of awards, accounting for 39 projects, representing approximately 25 percent of the total number of awards. These projects included maintenance works for stations, generators, water pumps, cables, and lighting, as well as works related to electricity, mechanical and marine equipment, and fire suppression and air conditioning systems.

Information technology and telecommunications systems and projects ranked second, with 26 projects accounting for 17 percent of total awards. These included maintenance works and projects for information technology and telecommunications devices, systems, and related consulting services.

Labor supply projects ranked third, with 17 projects accounting for 11 percent of total awards. These included providing labor for security, guarding, correspondence, printing, loading, and handling projects, as well as specialized technical labor.

Converting public expenditure into actual economic activity

These indicators reflect the expanding scope of projects being pushed toward implementation and their diversity across infrastructure, operational works, digital services, and oil projects, thereby providing a broader base for stimulating economic activity related to government projects in the coming phase.

The importance of these awards exceeds their direct financial value, as government and oil projects represent one of the main channels for converting public expenditure into actual economic activity by stimulating demand for construction materials, services, equipment, and labor, and by increasing employment rates among local companies, contractors, and suppliers.

Furthermore, accelerating the implementation of capital projects can enhance the contribution of non-oil activities to Gross Domestic Product, particularly in the construction, services, transport, storage, and industry sectors. The magnitude of the final impact depends on the speed of implementation, the percentage of local content in contracts, and the ability of projects to generate sustainable economic activity.