Tenders: 1 million KD cap on contracting without the Authority's approval

- Raising the financial threshold for “Petroleum” contracts and its wholly-owned subsidiaries, with special purchasing committees established within the institution

- Removing the membership of “Planning,” “Labor Force,” and “Small Projects” from the Board of Directors of the Tender Board

- Prohibiting the use of local agents or commission-based agents in contracting procedures

- Awarding tenders to “Small Projects” with a price differential of up to 10 percent above the lowest acceptable bid

- Requiring contractors to purchase no less than 30 percent of the products listed in the Industrial Catalog

Officially published in Al-Kuwait Al-Youm newspaper, Law-Decree No. 94 of 2026 amends certain provisions of Law No. 49 of 2016 concerning Public Tenders.

The explanatory memorandum indicated that the practical application of certain provisions of Law No. 49 of 2016 concerning Public Tenders “revealed a number of practical difficulties and issues that had negative repercussions on the implementation of the law as intended.”

Accordingly, Item (3) of Article (2)/Third 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, with the provision that this threshold may be increased by a Cabinet decision based on a proposal from the KPC Board of Directors.

Furthermore, the purchasing unit at KPC and its wholly-owned subsidiaries was replaced by purchasing committees, which shall carry out their duties in accordance with the rules and procedures approved by the Board of Directors of the institution.

The amendment also authorized the Supreme Council of Petroleum to permit KPC or one of its wholly-owned subsidiaries to 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 Tender Board, by removing the membership of representatives from the State Authority for Planning Affairs, the Public Authority for Manpower, and the National Fund for Supporting and Developing Small and Medium Enterprises.

Additionally, Item (d) of the same article, concerning the representative of the government entity responsible for supervising the implementation of the tender, was amended to stipulate that their participation in the Board of Directors of the Tender Board shall be without voting rights.

Item (First) of Article No. (19) was also amended to raise the maximum contract value that public entities may conclude without approval from the Tender Board to 1 million Kuwaiti Dinars, with the provision that this value shall be reviewed by a Cabinet decision to allow greater flexibility in adjusting this value, either upward or downward, based on a recommendation from the Board of Directors of the Tender Board. The reference to coordination with the National Fund for Supporting and Developing Small and Medium Enterprises, previously included in this article, was deleted.

Article No. (26), concerning the classification of general contracting companies, was amended by adding a provision requiring 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-based agents in all contracting procedures, in accordance with rules approved by the Cabinet based on a proposal from the competent Minister, after coordination with relevant authorities.

The amendment also addressed Items (1) and (2) of Article No. (39), by separating design works from construction works, and exceptionally permitting their combination when the nature of the works so requires, while abolishing the exemption for small and medium enterprise owners from fees for obtaining tender documents.

Finally, Article No. (41)/Paragraph Two and Article No. (49)/Paragraph Two were amended by replacing the phrase “whom he deems appropriate” with “the technical sector.”

The amendment included Article 62, entrusting the Council of Ministers with the authority to determine the products granted priority in procurement processes. This is achieved by assigning the minister responsible for economic and industrial policies, or the relevant public authority, to issue a decision specifying the products that are granted priority in government procurement.

The amendment also covered Article 62 bis, establishing that tenders should be awarded to owners of small and medium-sized enterprises (SMEs), provided that their proposals meet the required conditions and specifications, and the prices offered do not exceed 10% of the lowest acceptable bid. It further stipulated that priority granted to products under Article 62 bis cannot be combined with priority granted under Article 62 in the same tender. The executive regulations shall specify the conditions and controls for the participation of SME owners in procurement processes.

Article 78 was amended to reorganize the Appeals Committee. The executive regulations shall govern the committee’s rules and procedures for submitting, reviewing, and deciding on appeals, as well as notifying the appellant and the Authority of its decision. The regulations shall also address cases for refunding appeal fees. In all cases, the Committee may suspend procurement procedures until a final decision on the appeal is rendered.

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

Article Two of the Decree-Law added a definition for oil operations. Article Three repealed Article 7 concerning the technical sector, and abolished any provision in other legislations that conflicts with the final paragraph of the substituted Article 31 in this Decree-Law. The provisions of Article One 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 Four added a provision stipulating that the Board of Directors of the Central Authority for Public Tenders shall continue in its current composition upon the entry into force of this Decree-Law until the expiration of its term. The composition of the subsequent Board shall be subject to the provisions of the substituted Article 5 under Article One of this Decree-Law.

Finally, Article Five obligated the ministers, each within their respective competence, to implement its provisions. It shall take effect three months after its publication in the Official Gazette.