Kuwait raises gov’t tender threshold from 75,000 dinars to 1 mln under new law
Faster contracts, stronger oversight at heart of Kuwait’s new Tenders Law; aims to speed up projects and streamline government contracts; also provides specific opportunities and advantages for SMEs to participate in government tenders.
Kuwait’s amended Public Tenders Law is expected to accelerate development projects, simplify government procurement procedures and give public entities greater flexibility in awarding contracts, while strengthening oversight, transparency and governance.
The key amendments were discussed at a seminar organized by the Fatwa and Legislation Department on Tuesday under the title “A legal reading of the new amendments and their effects on government contracting procedures”.
Speakers highlighted the role of the law in reducing administrative delays, supporting local products and small and medium enterprises (SMEs), and improving the efficiency of government spending.
Chairman of the Central Agency for Public Tenders (CAPT) Essam Al-Marzouq said one of the most significant changes was raising the financial threshold for tenders from 75,000 dinars to one million dinars.
He explained that around 50 percent of tenders under the previous threshold involved routine operational and repetitive work that did not require the agency’s intervention. The change would allow government entities to meet their requirements faster and enable CAPT to focus on strategic and vital projects.
Al-Marzouq said government agencies had the financial and administrative capacity to manage the higher threshold without compromising oversight or procedural integrity and explained that while separating design and construction was suitable for conventional projects, complex developments such as power plants and oil projects could combine both under one contract, subject to justified exceptions.
He added that amendments concerning local products had been reviewed to give national industries a clearer competitive advantage over foreign products, with the relevant authorities, including the Ministry of Industry, working on the required ratios and controls.
The law also provides specific opportunities and advantages for SMEs to participate in government tenders.
Undersecretary of the Fatwa and Legislation Department Najla Al-Ghais said the amendments would simplify procedures, reduce paperwork and strengthen the government contracting system. She highlighted the importance of organizing procurement committees within government entities and introducing contractor classification and periodic performance evaluations to encourage companies to improve their standards.
Assistant Undersecretary for Support Services at the Ministry of Finance Mishaal Al-Qahs said the ministry was reviewing amendments to Circular No. 5 of 2020 governing public-sector procurement.
Proposals include raising the ceiling for price quotations from 5,000 to 75,000 dinars, increasing the practice ceiling from 25,000 to 250,000 dinars with public announcement, and allowing internal tenders ranging from 250,000 dinars to one million dinars with the approval of the head of the government entity.
The ministry is also considering including government car-rental contracts under group purchasing guidelines to standardise procurement and improve spending efficiency.
Meanwhile, the Kuwait Petroleum Corporation (KPC) Acting Director of Legal Affairs Alaa Al-Saqabi said oil operations remained subject to the corporation’s internal regulations because of their specialized technical, economic and commercial nature.
The amended law provides clearer definitions of oil operations and authorizes KPC’s Board of Directors to establish dedicated contracting systems. She said the corporation had formed committees to prepare the relevant regulations.
The KPC and its subsidiaries have an internal purchasing committee and a Supreme Purchasing Committee, which also handles grievances. The amendment subjects the corporation to subsequent audits by the State Audit Bureau.
On local agents, Al-Marzouq said the amended law allows the relevant minister to establish rules governing exceptions where government entities require an accredited local agent or commission agent, taking into account the nature of their operations.
Fatwa and Legislation Department Undersecretary Counselor Haitham Al-Ruwaished said the seminar was part of a series aimed at raising legal awareness among government employees and ensuring a sound understanding of the amendments.
He stressed that the changes were intended to address difficulties encountered under the previous law and ensure faster, more efficient, and transparent and fair tender procedures.
Al-Qahs said the Finance Ministry would circulate a draft of the revised procurement circular to government entities in mid-November to obtain their feedback before final approval. The amended law was published in the Official Gazette on September 27 and is scheduled to take effect at the end of December.
