Kuwait tenders: how they work and when you need a local partner

A guide to Kuwait tenders for companies: the Central Agency for Public Tenders, Law 49 of 2016, what Decree-Law 94 of 2026 changed, and when a local partner is the answer.

Kuwait tenders from government entities are governed by one law, Law No. 49 of 2016 on Public Tenders, and run by one body, the Central Agency for Public Tenders (CAPT). The rules have just changed: Decree-Law No. 94 of 2026 amending the law was published on 27 September 2026 and takes effect three months after publication.

This guide explains how a tender is run in Kuwait, what the law requires of bidders, what the latest amendment changed, and when a company coming from abroad needs an accredited local partner. The Arabic version is here.

Who issues Kuwait tenders

The Central Agency for Public Tenders is an independent public authority reporting to the Council of Ministers. Outside the cases the law names, public entities may not import goods, commission contractors or contract for services except through it. The Agency issues public tenders and the methods treated as such, receives and decides on bids, awards them, classifies contractors and supervises pre-qualification.

Tender announcements are published in the Official Gazette, Kuwait Al-Youm, and on the Agency's website at least thirty days before the deadline, and registration and participation run electronically through the Agency's site and the e-government portal.

What Decree-Law 94 of 2026 changed

ItemBeforeAfter
Ceiling for contracting without the Agency's permissionKWD 75,000 (Article 19)KWD 1,000,000
Local agentThe tenders law itself did not require one, but the Commercial Law obliged a foreign company to operate through a Kuwaiti agent; the December 2023 reform allowed it to open a branch without an agent"The use of a local agent or a commission agent is prohibited in all contracting procedures" (Article 31)
SMEs—The tender is awarded to them when their prices are no more than 10% above the lowest acceptable bid
Local purchasingThe foreign contractor had to buy at least 30% of national productsThe contractor must buy at least 30% of the products listed in the Industrial Directory
Oil sectorA purchasing unit at the Kuwait Petroleum CorporationPurchasing committees at KPC and its wholly owned companies; the Agency handles only purchase contracts above KWD 20 million (Article 2)
Grievances committeeA committee attached to the Council of MinistersA grievances committee attached to the Council of Ministers that decides within thirty days of filing, under procedures the executive regulation sets (Article 78)

The line that matters most to a company coming from abroad is the agent row: the route foreign companies used to take into Kuwaiti tenders, the local agent, is closed in contracting procedures. The open routes are a registered branch, or a partner.

What the law requires of a bidder

  • Registration and classification. A bidder must be registered in the Agency's register of suppliers or contractors, and the classification committee classifies general contractors into four categories according to their financial and technical capability (Article 26). A tender is issued to a specific category; if your company is not classified in it, you cannot enter alone.
  • Initial security. The bid must be accompanied by an initial security in the form of a certified cheque or a bank guarantee from an approved bank; a bid without it is disregarded (Article 45).
  • Final security. Submitted by the winner at the percentage the executive regulation sets, and valid until three months after the end of the contract period (Article 65). A winner who fails to submit it, or to sign the contract on time, forfeits the initial security.
  • Subcontracting. Only with the prior written approval of the entity, for each contract separately; the subcontractor must be registered, classified and qualified for the same works, and the main contractor's liability is not reduced (Article 71).
  • Complaints and grievances. Anyone harmed may complain within seven days of publication or notification of the decision, and the entity decides within seven working days (Article 77); any concerned party may appeal the Agency board's decisions to the grievances committee within seven working days (Article 78).

Foreign companies in Kuwait tenders

Since the December 2023 amendments, Kuwaiti and foreign companies stand on an equal footing in bidding, and foreign companies may open branches in Kuwait and operate without a local agent. The 2026 amendment then banned local and commission agents in all contracting procedures.

Equal standing to bid does not mean equal odds at evaluation and delivery:

  1. Classification comes before the bid. Contracting tenders are issued to classification categories, and classification rests on completed work and financial capacity inside Kuwait.
  2. 30% of products are local. The contractor must buy at least 30% of the products listed in the Industrial Directory, and a foreign contractor must assign a share of the contract works to local contractors registered with the Agency, with a portion reserved for SMEs (Article 87).
  3. Delivery on the ground needs a commercial registration or branch, staff and licences.

When you need an accredited local partner

When the tender asks for what your company does not hold: a classification category above yours, a classification in an activity you are not registered for, or a presence in the Kuwaiti market that covers the local purchasing and assignment ratios. In those cases you bid with a classified partner that holds what you lack, in the form the tender documents allow, or join as a subcontractor with the entity's approval.

That is what Munaseq is for: you send us the tender and the classification or accreditation you are missing, by name, and we match you with up to three accredited partners that registered it and showed proof, each with the reason for the match, and arrange the first meeting. The contract is directly between you and your partner.

Sources

This guide is general information, not legal advice. The law, its executive regulation and the tender documents are what count, and the amended regulation following Decree-Law 94 of 2026 is still to come.

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