Decree-Law Amending the Provisions of Public Tenders

The Official Gazette, “Kuwait Today,” published in its issue No. 1810 released today, Decree-Law No. 94 of 2026 amending certain provisions of Law No. 49 of 2016 concerning Public Tenders. The decree includes a series of amendments to government contracting and procurement procedures, the most prominent of which is the exemption of oil-related operations from the provisions of the law, regardless of their value, and raising the maximum contract value that public entities may conclude without the approval of the Central Tenders Committee to one million dinars.

The decree-law stipulates that its provisions shall take effect three months after its publication in the Official Gazette. The amendments contained in its first article shall not apply to procurement processes announced prior to its entry into force, except for the provisions of Articles 62 and 62 bis.

Under the amendment, oil-related operations are exempted from the scope of the Public Tenders Law. They are defined as all technical operations related to the exploration, production, processing, and export of oil and gas, including exploration, drilling, field development, well drilling and maintenance, production, processing, storage, transportation, loading, shipping, sale, and purchase of hydrocarbon products, as well as operational and specialized services associated with them.

**One Million Dinars for Contracts Without Committee Approval**

The decree-law raised the maximum contract value that public entities may conclude without the approval of the Central Tenders Committee from previous limits to one million dinars. It also prohibits splitting a single contract into multiple smaller contracts to reduce their value and avoid the Committee’s jurisdiction.

The amendment obligates public entities to provide the Ministry of Finance with periodic reports every six months regarding contracts concluded within this threshold. It also authorizes the Council of Ministers to adjust the maximum value limit, either upward or downward, based on a recommendation from the Committee’s Board of Directors.

**Amendments to Oil Sector Procurement**

The amendments include the Kuwait Petroleum Corporation (KPC) and its wholly-owned subsidiaries. The decree stipulates that the Central Tenders Committee shall be competent for procurement contracts executed within Kuwait exceeding 20 million dinars in standard procurement cases. Contracts below this value shall be handled by procurement committees within KPC and its affiliated companies, with contract minutes referred to the Committee, the Court of Audit, and the Ministry of Finance.

The amendment also allows for increasing this threshold by a Council of Ministers’ decision based on a proposal from KPC’s Board of Directors, subject to adherence to principles of transparency, disclosure, governance, fairness, equal opportunity, and avoidance of conflicts of interest.

The decree empowers the Supreme Petroleum Council, in urgent, critical, or emergency cases, to authorize KPC or one of its wholly-owned subsidiaries to purchase or import items, or to assign contractors to execute urgent works, in accordance with rules and procedures determined by the Council.

**Restructuring the Committee’s Board of Directors**

The decree amended the composition of the Central Tenders Committee’s Board of Directors, reducing it to seven members appointed by a decree based on the nomination of the competent minister and with the approval of the Council of Ministers, for a non-renewable term of four years. Two members shall be appointed as full-time Chairman and Vice-Chairman.

Members of the Board must be Kuwaiti nationals of integrity, with expertise and specialization in engineering, oil, medical, economic fields, or other areas relevant to the Committee’s work.

The amendment provides for the participation of representatives from the Office of Legal Opinions and Legislation, the Ministry of Finance, and the government entity overseeing the tender execution. The representative of the overseeing entity shall not have voting rights. The duration of participation for these representatives shall not exceed two years.

**Prohibition of Local Agents in Contracting Procedures**

The amendments cover tender participation conditions, practices, and direct contracting. The decree prohibits the use of local agents or commission agents in all contracting procedures, according to rules approved by the Council of Ministers based on the competent minister’s proposal and in coordination with relevant entities.

It maintains the requirement for registration in the Commercial Register and in the suppliers’ or contractors’ registry, depending on the nature of the tender, practice, or direct contract. It also regulates the participation of foreign bidders in accordance with the Executive Regulations.

**Priority for Small and Medium Enterprises (SMEs)**

The decree establishes a new mechanism for granting award priority to owners of small and medium enterprises. It stipulates that awards shall be granted to them if their bids meet specifications and conditions, and their prices do not exceed 10 percent above the lowest acceptable bids.

The decree also prohibits combining the priority granted to priority products in government procurement with the priority granted to SME owners in the same tender. The Executive Regulations shall specify the conditions and controls for participation.

In this context, the amendment obligates foreign or local contractors to purchase at least 30 percent of products listed in the Industrial Catalog issued by the Public Authority for Industry. Purchases from local suppliers registered with the Committee are permitted if these products are unavailable, subject to specified controls.

Furthermore, foreign contractors are required to subcontract at least 30 percent of the contract works to local contractors, with 10 percent of this portion reserved for SME owners. These percentages may be adjusted by a Council of Ministers’ decision based on a proposal from the Committee.

**Reorganization of Appeals**

The decree reorganized the Appeals Committee against the Committee Board’s decisions, attaching it to the Council of Ministers. It shall consist of five expert members specialized in legal, financial, and technical fields, serving a non-renewable term of three years.

Interested parties may appeal the Board’s decisions within seven working days from the date of their publication or notification to the interested parties, whichever is earlier. The Committee shall rule on the appeal within a period not exceeding 30 days from the date of submission.

The decree authorizes the Committee to suspend procurement procedures until a decision is reached on the appeal, in accordance with controls and procedures specified in the Executive Regulations.

The Central Tenders Committee’s Board of Directors shall continue in its current composition upon the entry into force of the decree-law until the expiration of its term. The subsequent Board’s composition shall be subject to the new provisions.