- Oil and government projects accounted for major spending: Oil-sector awards reached 475.1 million dinars through four tenders, while government entities secured 596.28 million dinars through 150 awards. KOC alone accounted for 461.48 million dinars
- Electricity, oil and infrastructure projects dominated major awards: The Ministry of Electricity, Water and Renewable Energy led government entities with 430.4 million dinars across 35 awards. Electrical and mechanical works were the largest project category, with 39 projects, or 25 percent of total awards
- Project execution could broaden economic activity beyond oil: As awarded projects move into implementation, they are expected to create demand for construction materials, equipment, logistics, technical services and labour, potentially supporting contractors
Kuwait is accelerating the award of government and oil-sector projects, with public spending increasingly moving from the planning and tendering stages into contracts and implementation. The trend is strengthening the role of capital expenditure in supporting economic activity while creating demand across construction, contracting, services, supply and related sectors.
Semi-annual data from the Central Agency for Public Tenders for the first half of 2026 points to a growing pipeline of projects reaching the award stage, suggesting that a significant portion of planned public spending is beginning to translate into actual business activity. Between January and the end of June, the agency held 54 meetings covering tender procedures, applications, bid openings, contract awards and other matters related to public procurement.
The agency said it received 91,191 tender-related applications covering projects for government entities and the oil sector, with procedures continuing according to the respective stages of each project. During the six-month period, 154 tenders and practices were awarded at a combined value of approximately 1.07 billion dinars, against an estimated value of about 1.19 billion dinars.
Oil and government projects
The difference generated savings of approximately 120.3 million dinars, reflecting the gap between the estimated costs of the projects and the final values at which contracts were awarded. The value of awarded contracts was divided between the oil sector and government entities. Oil-sector awards amounted to approximately 475.1 million dinars through four tenders, while government ministries, agencies and public bodies accounted for around 596.28 million dinars through 150 tenders and practices.
The Ministry of Electricity, Water and Renewable Energy recorded the largest value among government entities, with 430.4 million dinars across 35 tenders and practices. The Directorate General of Civil Aviation followed with awards worth 35.4 million dinars through five tenders and practices, while the Ministry of Public Works ranked third with 16.53 million dinars through seven awards.
Within the oil sector, the Kuwait Oil Company accounted for the largest share of awarded contracts, with three tenders worth a combined 461.48 million dinars. The Kuwait National Petroleum Company followed with one tender valued at 12.68 million dinars. The concentration of oil-sector awards at KOC reflects the scale of projects being advanced by the company during the first half of the year and the continued weight of oil-related investment within Kuwait’s public project pipeline.
Electrical and mechanical projects lead
By project category, electrical and mechanical works recorded the highest number of awards, with 39 projects, representing about 25 percent of the total. The projects covered maintenance and related works for stations, generators, water pumps, cables and lighting systems, alongside electrical and mechanical works involving marine facilities, fire protection and air-conditioning systems.
Technology, information and communications projects ranked second, accounting for 26 projects, or 17 percent of total awards. These included maintenance and other works involving information and communications technology equipment and systems, as well as related consulting services.
Labour supply projects ranked third, with 17 awards, equivalent to 11 percent of the total. These covered the provision of personnel for security and guarding, correspondence, printing, loading and handling, as well as specialised technical work. The first-half figures point to a project pipeline spanning infrastructure, utilities, oil operations, maintenance, technology and public services, broadening the channels through which government expenditure can feed into the wider economy.
The economic significance of the awards extends beyond the value of the contracts themselves. As projects move into implementation, they can generate demand for construction materials, equipment, professional and technical services, transport, logistics and labour, creating business opportunities for contractors, suppliers and service providers.
Faster execution of capital projects could also support greater activity in non-oil sectors, particularly construction, services, transportation, storage and manufacturing. The eventual economic impact, however, will depend on how quickly awarded projects move into execution, the level of local participation and content within contracts, and the extent to which projects generate sustained demand beyond the initial spending cycle.
For Kuwait, the first-half tender data therefore provides a clearer indication of public investment moving through the procurement pipeline and into the commercial economy, with government and oil projects remaining important drivers of contracting activity and infrastructure development.
