Kuwait Tenders Face Scrutiny Amid Infrastructure Push

Background

Kuwait’s public procurement landscape is currently under close examination, with the Central Agency for Public Tenders (CAPT) suspending a significant vehicle leasing tender. This comes as the Ministry of Electricity and Water (MEW) progresses with a substantial infrastructure project aimed at bolstering the nation’s power grid. These developments underscore the ongoing regulatory oversight and strategic investment in Kuwait’s economy.

Market Context

The CAPT decision follows an intervention by the Grievance Committee. The committee requested all documentation related to Regulation No. 116/2025, a tender for leasing various vehicles with drivers for ministry sectors. A bidder had filed a grievance, prompting the committee to halt all related procedures pending its final ruling.

Local Relevance

This regulatory pause highlights Kuwait's commitment to transparent public procurement processes. Such oversight is crucial for maintaining investor confidence and ensuring fair competition among contractors in the GCC markets. The resolution of this grievance will set a precedent for future tender challenges.

Outlook

Meanwhile, the Ministry of Electricity and Water has moved forward with a vital KD 8.069 million tender. This project involves the supply and installation of high-voltage and extra-high-voltage overhead power lines across the country. The initiative aims to modernize Kuwait’s electricity transmission network, ensuring reliable power delivery to substations and ultimately to homes and businesses.

The investment is critical for meeting the nation’s growing energy demands, particularly during the peak summer months. It also supports the provision of uninterrupted electricity to new developments and customers. The tender has been referred to the State Audit Bureau for pre-audit and approval, a standard procedure for major government contracts.

Beyond infrastructure, the MEW also reported significant progress in its Kuwaitization efforts. Between January and November 2025, 856 Kuwaiti nationals were appointed across various ministry sectors. Kuwaitis now constitute 97.8 percent of the ministry’s total workforce of 36,245 employees, reflecting a strong policy focus on national employment within key government entities.

As Kuwait continues its ambitious development plans, the interplay between robust regulatory frameworks and strategic infrastructure investment remains paramount. Investors and market observers will closely monitor the resolution of the CAPT tender and the progress of MEW’s power grid upgrades, both vital for the nation’s economic trajectory.