27/09/2026
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27/09/2026
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KUWAIT CITY, Sept 27: Kuwait has issued Decree-Law No. 94 of 2026 amending several provisions of Law No. 49 of 2016 concerning public tenders, introducing changes to government procurement procedures, Kuwait Petroleum Corporation purchasing, small and medium-sized enterprise participation, contractor classification and the appeals process.
The decree-law was published Sunday in the official gazette “Kuwait Alyoum.” Among the key amendments are raising the value of contracts that government entities may conclude without approval from the Central Agency for Public Tenders to KD1 million, prohibiting the use of local agents or commission agents in contracting procedures, raising the KPC procurement threshold subject to the law to KD20 million, and giving qualifying SMEs preference when their bids are no more than 10% above the lowest acceptable bid.
The decree-law also establishes a grievance committee attached to the Cabinet, which must decide complaints within 30 days, while introducing requirements for contractors to purchase local products and assign part of their contracted work to local contractors.
Article One replaces the texts of Articles 2, 5, 19, 26, 31, 39, 41, 49, 62, 62 bis, 78 and 87 of Law No. 49 of 2016 with the following provisions:
Kuwait Petroleum Corporation and its wholly owned subsidiaries, with regard to the procurement of goods, contracts and services, will be subject to the oversight of procurement contracts executed within Kuwait that exceed KD20 million, in accordance with the provisions of the law.
Procurement committees will be formed within KPC and its wholly owned subsidiaries to handle contracts of lesser value. Minutes of contracts concluded by these committees must be submitted to the oversight body, the State Audit Bureau and the Ministry of Finance.
The committees will also establish special conditions to facilitate the qualification and participation of small and medium-sized enterprises, in coordination with the National Fund for Small and Medium Enterprise Development.
The Cabinet may increase the threshold by decision based on a proposal from the KPC Board of Directors.
Subject to Article 152 of the Constitution, all oil operations, regardless of their value, are excluded from the provisions of the public tenders law.
The purchasing committees will operate according to rules and procedures approved by the KPC Board of Directors. Appeals against their decisions will also be handled under those rules and procedures, taking into account transparency, disclosure, governance, fairness, equal opportunities and the prevention of conflicts of interest.
The law will apply only where such rules and procedures are absent and in a manner that does not conflict with them.
The Supreme Petroleum Council may authorize KPC or one of its wholly owned companies to purchase or import items or assign contractors to carry out urgent work because of the nature of the materials or work required or because of urgent or emergency circumstances.
Such purchases or assignments may be carried out according to rules and procedures approved by the Supreme Petroleum Council without being bound by other applicable rules or procedures. The KPC chairman must subsequently notify the Supreme Petroleum Council of contracts reaching the amount specified under the applicable procedures.
The Board of Directors of the Central Agency for Public Tenders will consist of seven members, appointed by decree based on the nomination of the competent minister and after Cabinet approval.
Members will serve a non-renewable four-year term.
A full-time chairman and vice chairman will be appointed from among the members. For the first board formed under the new provisions, the terms of three members will end two years after appointment, with neither the chairman nor vice chairman among those whose terms expire.
A decree will determine which members’ terms end and appoint their replacements for four-year terms.
The Cabinet will determine the members’ remuneration, while their dismissal will be by decree based on a proposal from the competent minister.
Members must be Kuwaiti citizens of integrity with experience and specialization in engineering, oil, medical, economic or other fields related to the agency’s work. They must not have been subject to a final bankruptcy ruling or convicted of a felony or a crime involving moral turpitude or dishonesty.
The board will also include:
The representatives of the entities listed above will be selected periodically, with a maximum term of two years.
The Board of Directors may seek assistance from experts from the concerned entity or elsewhere to clarify matters directly related to its responsibilities. Such experts will not have voting rights.
Government entities subject to the law may conclude contracts for purposes covered by the law without obtaining permission from the Central Agency for Public Tenders, provided the value of the contra
Source: Arab Times
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