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The Ministry of Finance has begun reviewing government procurement procedures following amendments to the Public Tenders Law that raised the contract threshold under the Central Agency for Public Tenders to 1 million dinars from 75,000 dinars. The Times Kuwait reported on October 19, 2026, that the ministry directed entities subject to the law to secure updated financial approvals before awarding tenders or contracts. A working group led by the Director General of Public Services, Storage and Procurement Systems will assess Circular No. 5 of 2020 for required changes and resolve practical difficulties observed during earlier application. The review seeks to update regulations, strengthen controls and improve efficiency in public sector purchasing according to the publication.
Decree-Law No. 94 of 2026, published in the Official Gazette on September 27, 2026, amended multiple articles of Law No. 49 of 2016 and will enter into force three months later. The legislation exempts all oil operations from the tenders law irrespective of value while lifting the Kuwait Petroleum Corporation threshold for central agency involvement to 20 million dinars. Government bodies must report every six months on contracts signed within the new self-award limit and may not split purchases to evade oversight. The Cabinet can adjust the 1 million dinar ceiling on the agency’s recommendation, a summary from Wefaq Law noted.
Small and medium-sized enterprises receive a 10 percent price preference on compliant bids that do not exceed the lowest acceptable offer by more than that margin under the updated provisions. Foreign contractors awarded public projects must subcontract at least 30 percent of the work to local firms, with 10 percent of that portion reserved for SMEs, according to an AGBI report published on September 28, 2026. Contractors must also source no less than 30 percent of required products from the Industrial Directory maintained by the General Authority for Industry. Economic consultant Ali Al-Anzi told AGBI that stricter enforcement of these subcontracting rules will stimulate the local contracting market, develop national skills and resources and support SME growth.
Central Agency for Public Tenders board chairman Esam Al-Marzouq said nearly 50 percent of tenders under the prior framework had been valued at the old 75,000 dinar ceiling and consisted mainly of repetitive operational work. The elevated threshold frees the agency to concentrate on strategic projects while public entities maintain readiness to handle the expanded self-contracting authority. The amendments prohibit combining SME preference with product-origin priority in the same tender and remove the previous exemption from tender document fees for SMEs. A Legal 500 analysis indicated that the changes also streamline board governance at the agency and reorganize the grievance committee to decide appeals within 30 days.
The ban on local agents and commission agents throughout contracting procedures applies under rules to be issued by the Cabinet and repeals any conflicting earlier statutes. Tenders announced before the effective date will follow previous regulations except for the new SME and priority provisions. The Ministry of Finance review addresses observations from entities on existing circulars with the goal of clarifying controls and aligning them with the amended legal framework. Reports from multiple legal offices confirm that the package modernizes procurement while preserving transparency and competitive opportunity.
