Kuwait has updated its public tenders law, requiring foreign contractors that win government projects to subcontract at least 30% of the work to local contractors.
At least 10% of that share must go to small contractors, according to the legislation published in the official gazette and Kuwaiti media on Sunday. The measure builds on an initial law introduced in 2016 and is intended to support domestic businesses and improve the performance of national companies.
Authorities are required to monitor foreign contractors’ compliance with the subcontracting rules, the law’s implementing circular said.
Ali Al-Anzi, head of Kuwait’s Al-Manakh economic consultancy, said earlier rules allowed foreign contractors to use local subcontractors but were not fully enforced. He said the updated law gives authorities stronger enforcement powers and puts greater emphasis on SMEs.
The changes come as Kuwait advances major projects involving ports, airport expansions, roads and its hydrocarbon sector. Capital spending on new projects and other investments was projected at around KD3.1 billion ($10.3 billion) in the 2026-27 budget, or nearly 12% of total expenditure, according to the finance ministry.
Source: AGBI
