Kuwait revamps public tender rules, raises contract limit to 1 million dinars
. . . tells government entities to renew financial approvals for tenders
- CAPT has instructed government entities subject to the Public Tenders Law to obtain updated financial approval from the Ministry of Finance for certain tenders and contracts.
The Ministry of Finance has begun reviewing and updating government procurement procedures following legislative amendments to the Public Tenders Law, including raising the financial threshold for contracts falling under the jurisdiction of the Central Agency for Public Tenders to 1 million dinars.
The move follows amendments aimed at improving the business environment and aligning government procedures with the objectives of the New Kuwait 2035 vision. The changes are expected to require revisions to existing procurement regulations, financial controls and procedures governing government contracts.
As part of the initiative, the Ministry of Finance has proposed forming a working group headed by the Director General of Public Services, Storage and Procurement Systems. The team will review Circular No. 5 of 2020, identify provisions requiring amendment and address practical difficulties encountered by public entities during implementation.
The proposed working group will also examine procurement methods, financial thresholds and related controls to ensure that the procedures are consistent with the amended Public Tenders Law and its executive regulations. It will coordinate with relevant authorities and seek specialist input where necessary.
The team is expected to prepare a comprehensive draft amendment to the circular for approval and issuance in line with the implementation of the amended legislation. It has been given three months to complete its work from the date of its formation, with the possibility of an extension if required.
Government Entities Required to Update Financial Approvals
Separately, the Central Agency for Public Tenders has instructed government entities subject to the Public Tenders Law to obtain updated financial approval from the Ministry of Finance for certain tenders and contracts. The requirement applies when a new fiscal year begins before a tender or other covered procurement process has been awarded or finalized. The procedures cover tenders, practices, direct contracting and framework agreements falling within the scope of the directive.
The measure is intended to ensure that financial approvals remain current and reflect the budgetary position of the relevant government entity before contracts are awarded. The Ministry of Finance’s review will also address observations raised by public entities during the practical application of existing procurement procedures, with the broader objective of improving efficiency, clarifying controls and ensuring that government contracts are handled in accordance with the updated legal framework.
Amendments to Public Tenders Law
The changes follow Decree-Law No. 94 of 2026, which amends certain provisions of Law No. 49 of 2016 concerning public tenders. According to the reported amendments, oil operations are exempted from the law regardless of their value, while the financial ceiling for contracts that public entities may conclude without obtaining approval from the Central Agency for Public Tenders has been raised to 1 million dinars.
The amended provisions are scheduled to take effect three months after publication in the Official Gazette, according to the report. The revision of procurement procedures marks a further step in aligning Kuwait’s government contracting framework with the amended legislation, while strengthening financial oversight and improving the efficiency of public-sector purchasing.
