Kuwait has amended its public procurement framework under Decree-Law No. 94 of 2026, introducing changes to public contracting procedures, procurement thresholds and petroleum-sector procurement.
The amendments increase key procurement thresholds, introduce greater flexibility in government and petroleum-sector procurement, and establish new rules concerning foreign parties, local contractors and SMEs.
What has changed?
The key amendments include:
Foreign parties and use of agents
Subject to certain qualifications, foreign parties may tender directly and alone for government contracts. The Decree-Law expressly restricts the use of a Kuwaiti agent in this context.
Public procurement thresholds
The threshold for public contracts that may be concluded without the authorisation of the Central Agency for Public Tenders (CAPT) has increased from KD 75,000 to KD 1 million.
Public entities must provide the Ministry of Finance with reports every six months on contracts concluded within this threshold. Contracts may not be divided for the purpose of avoiding CAPT jurisdiction.
KPC procurement
The threshold for procurement contracts of Kuwait Petroleum Corporation (KPC) and its wholly owned companies falling within CAPT’s jurisdiction has increased from KD 5 million to KD 20 million.
Procurement below this threshold will be handled by procurement committees within KPC and its wholly owned companies.
Petroleum operations
Petroleum operations are now exempt from the Public Tenders Law regardless of their value.
The Decree-Law introduces a broad definition of petroleum operations covering oil and gas exploration, production, processing, storage, transportation and related operational and specialised services.
SME preference
The preferential price margin applicable to qualifying small and medium enterprises (SMEs) has been reduced from 20% to 10% above the lowest acceptable bid.
Local content
Local content requirements have been revised to require foreign and local contractors to purchase at least 30% of products from those listed in the Industrial Directory issued by the Public Authority for Industry.
Other amendments
The Decree-Law also introduces amendments concerning:
- CAPT’s Board composition;
- contractor classification;
- tender procedures; and
- the grievance process.
When will the Decree-Law enter into force?
The Decree-Law will enter into force three months after its publication in the Official Gazette on 27 September 2026.
The amendments introduce changes that may affect how businesses participate in public procurement and structure their contracting arrangements in Kuwait.
For further information on the amendments to the Public Tenders Law or their potential implications for your business, please contact Luis Cunha, Head of Corporate Commercial, at lcunha@asarlegal.com.
