UPDATE: What Kuwait's Amended Public Tenders Law Means for Contractors and Suppliers

Decree-Law No. 94 of 2026, amending Public Tenders Law No. 49 of 2016, was published in Kuwait Al-Youm Issue 1810 on 27 September 2026 and takes effect three months later, on or about 27 December 2026. The text was not public when the Council of Ministers approved the draft on 9 September. It replaces twelve provisions of the 2016 law, adds a definition of oil operations and abolishes the Technical Sector of the Central Agency for Public Tenders (CAPT).

Why this matters: anyone who bids for Kuwaiti government work, supplies Kuwait Petroleum Corporation (KPC) or reaches public tenders through a local agent is affected. The decree-law moves a large share of purchasing outside CAPT, changes how KPC buys, bans agents, gives small and medium enterprises (SMEs) a price preference and reshapes the grievance route.

More contracts outside CAPT

Public entities may now contract without CAPT's permission up to KD 1 million, up from KD 75,000, using the methods set by Ministry of Finance circulars. The same items or works may not be bought this way above that figure within one fiscal year, a single deal may not be split to stay under it, and entities must report these contracts to the Ministry of Finance every six months. The Council of Ministers may raise or lower the ceiling on the recommendation of CAPT's board.

KPC buys for itself below KD 20 million

For standard purchases of goods, works and services by KPC and its wholly owned subsidiaries, CAPT now handles only contracts performed in Kuwait above KD 20 million. Below that, purchase committees inside KPC and the subsidiaries act under rules set by KPC's board, bound by transparency, governance and conflict-of-interest principles, and send their contract minutes to CAPT, the State Audit Bureau and the Ministry of Finance. The Council of Ministers may raise the threshold, and the Supreme Petroleum Council may authorise urgent purchases outside the usual procedures. Oil operations, now broadly defined from exploration and drilling to the sale of oil, gas, derivatives and petrochemicals, stay outside the law at any value.

No agents, more local content

The 2016 law did not require a foreign bidder to appoint a local agent. Under the amended Article 31, foreign bidders are exempt from the commercial registration requirement and from Article 23 of the Commercial Law, which limits non-Kuwaitis from trading without Kuwaiti participation, under rules to be set in the Executive Regulations. The article now also prohibits the use of local agents and commission agents in all contracting procedures, under rules the Council of Ministers will issue, and conflicting provisions in other laws are repealed. Local content also tightens: every contractor, foreign or local, must source at least 30% of the products listed in the Public Authority for Industry's industrial guide, and a foreign contractor must subcontract at least 30% of the works to local contractors classified by CAPT, with 10% of that share reserved for SMEs.

A real price preference for SMEs

Article 62 bis now requires the award to go to an SME whose compliant bid is priced no more than 10% above the lowest accepted bid. The preference cannot be combined with the priority for designated products under Article 62 in the same tender. CAPT must also ease SMEs' entry into the fourth contractor category, and classifications will be reassessed periodically. Not every change helps small firms: their exemption from tender document fees is removed. Separately, Article 39 now requires design work to be separated from construction before a works tender is issued, unless the nature of the works requires otherwise.

Grievances and the CAPT board

Grievances against CAPT board decisions go to a committee attached to the Council of Ministers: five legal, financial and technical experts appointed by decree for a single three-year term. A bidder has seven working days from publication or notification, whichever comes first, to file. The committee must issue a reasoned decision within 30 days and may suspend the procurement until it rules. For its next term, CAPT's board will have seven members appointed for four non-renewable years, plus representatives of the Fatwa and Legislation Department and the Ministry of Finance, and a non-voting representative of the government entity that will supervise the contract. The state planning body, the Public Authority for Manpower and the National Fund for SMEs lose their seats.

Which tenders the new rules reach

Tenders announced before the effective date stay under the current rules, with one exception: the product priority and SME preference in Articles 62 and 62 bis will apply to them too. The current CAPT board serves out its term.

What to do now

Bidders in tenders likely to be still open in late December should model how the SME preference could change the ranking. Foreign companies that reach Kuwaiti tenders through a local or commission agent should plan a compliant structure now and watch for the Council of Ministers' implementing rules. KPC vendors should ask early for the committee procedures that will apply below KD 20 million.

WEFAQ's view: this rebalances the tenders system rather than replacing it, but it moves real money. The KD 1 million ceiling and the KPC threshold take a large volume of purchasing out of CAPT's hands, and the agent ban reaches into arrangements many contractors rely on. Bidding, agency and subcontracting structures should be reviewed before the three months run out.

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Source: Decree-Law No. 94 of 2026 amending certain provisions of Law No. 49 of 2016 on Public Tenders, with its explanatory memorandum; Kuwait Al-Youm Issue 1810, pages A2 to A5, dated 27 September 2026.

This article is provided for general information only and does not constitute legal advice. For advice specific to your circumstances, please contact WEFAQ Law Firm.