An Amiri decree issued after approval by the Kuwaiti Council of Ministers on September 9, 2026 has formally amended Law No. 49 of 2016 on Public Tenders by lifting the ceiling for direct contract awards by ministries and public institutions to KD1 million without referral to the Central Agency for Public Tenders. The decree, whose provisions take effect three months after publication in the Official Gazette, additionally elevates financial thresholds applicable to petroleum contracts and creates specialized purchasing committees for the Kuwait Petroleum Corporation along with its subsidiaries. A readout from the Council of Ministers described the package as a response to operational obstacles that had slowed tender processes under the prior rules.
The Council of Ministers stated that the revisions seek to deliver greater efficiency, flexibility, speed and transparency in public procurement while preserving necessary oversight for larger projects. Earlier thresholds had channeled a wider array of contracts through the central agency, a step that frequently extended timelines for routine acquisitions according to agency records. The updated framework maintains competitive bidding requirements but grants line ministries and authorities expanded autonomy within the new monetary boundary.
Figures published by the Central Agency for Public Tenders place the value of contracts awarded during the first half of 2026 at KD1.07 billion across 154 tenders and practices, producing savings of KD120.3 million against original estimates. Awards in the oil sector totaled KD474 million through four major tenders while non-oil government entities accounted for KD596 million via 150 separate contracts during the same period. The Ministry of Electricity, Water and Renewable Energy represented the largest share of non-oil awards with KD430 million across 35 tenders according to the agency’s mid-year compilation.
The decree also introduces a prohibition on the involvement of local or commission-based agents in contracting procedures governed by the tenders law, with detailed controls to be issued by the Council of Ministers at a later date. Local media coverage of the anticipated amendments, including reports carried prior to final ratification, identified the agent ban as one of the more substantive policy shifts. The full amended text of the relevant articles appeared in the decree following its referral to the Amir for signature.
Implementation guidance will be circulated to all concerned government bodies once the three-month preparatory window closes, ensuring uniform application of the revised monetary limits and procedural simplifications. The Central Agency for Public Tenders convened 54 meetings in the first six months of 2026 to address tender submissions, bid openings and award decisions, an operational load the new thresholds are expected to ease for lower-value procurements. Officials at the agency have indicated that the reform aligns with broader efforts to accelerate capital project execution without compromising regulatory standards.
The Council of Ministers reviewed the draft amendments during a session chaired by the Deputy Prime Minister and Minister of Interior before forwarding the instrument for ratification. Publication in the Official Gazette completed the final formal step, activating the delayed enforcement timeline. Related adjustments to petroleum-sector contracting are intended to provide the Kuwait Petroleum Corporation with dedicated mechanisms that reflect the specialized nature of its operations.
