Law No. 74 of 2019 Amending Provisions of Law No. 49 of 2016 Regarding Public Tenders

Law No. 74 of 2019 was introduced as an amendment to specific provisions of Law No. 49 of 2016, which governs public tenders in Kuwait. This amendment is part of a broader effort to modernize and enhance the public procurement system in the country.

By refining key aspects of the law, the amendment aims to improve the overall processes and mechanisms used to manage public tenders. It focuses on ensuring greater transparency, efficiency, and fairness in the tendering process.

The changes introduced under this law are designed to reduce the possibility of corruption, minimize delays, and ensure that all participating entities—whether government bodies, private sector companies, or international players—are provided with equal opportunities to compete. Through these reforms, the law seeks to create a more streamlined, competitive, and accountable procurement environment that ultimately benefits both the public and private sectors, fostering trust and promoting economic growth.

The primary objectives of this law are to:

• Enhance transparency: Reduce opportunities for corruption and manipulation in public tenders by establishing clear and regulated procedures.
• Streamline processes: Simplify bureaucratic procedures, enabling quicker tendering and decision-making.
• Encourage competition: Promote participation from both local and international companies, leading to higher project quality and cost efficiency.
• Improve project outcomes: Enforce strict standards to ensure projects are delivered at the highest quality, aligned with global best practices.

This law introduced several amendments aimed at enhancing the tendering system in Kuwait:

• Clear eligibility criteria: Only qualified companies can participate, fostering trust and reducing chances of unfair practices.
• Updated oversight mechanisms: New tools were introduced to monitor compliance with legal procedures.
• Expedited decision-making: The amendments reduce the time required for tendering and awarding, ensuring projects commence promptly.
• Enhanced dispute resolution mechanisms: The law refines the legal framework for resolving disputes among stakeholders, ensuring continuity in project execution.

• Promoting competitiveness :

  The law encourages fair competition among local and international companies, improving the quality of public projects.

• Supporting the national economy : It opens more opportunities for Kuwaiti companies to participate in public tenders, bolstering the local economy and creating job opportunities.
• Building trust in the legal system : With enhanced transparency and regulated processes, companies and investors gain confidence in the government’s tendering framework.
• Ensuring high-quality outcomes : Strict eligibility and implementation standards ensure projects meet expectations and adhere to high-quality benchmarks.

Despite its advantages, certain challenges may arise during the implementation of Law No. 74 of 2019:

• Complexity in implementation: Government entities may require time to adapt to the new requirements, potentially delaying some projects.
• Increased financial burdens: The strict standards and requirements might pose additional costs for companies, especially smaller contractors.
• Legal interpretation: Some provisions of the law may lack clarity, leading to difficulties in interpretation and application, particularly in complex cases.
• Limited impact on corruption: While transparency is enhanced, strict enforcement is necessary to eliminate any remaining unethical practices.

Law No. 74 of 2019 represents a significant step towards modernizing Kuwait’s tendering system. By encouraging local and international participation, it fosters innovation and elevates the quality of public projects. Furthermore, it supports the national economy by encouraging Kuwaiti companies to take part in delivering projects that benefit the community.

At Al-Dostour Law Firm, we have extensive experience in assisting clients with all stages of public tenders. We understand the critical importance of complying with Kuwait’s legal framework, including Law No. 74 of 2019, to ensure competitive and successful participation.

Our expert team provides precise legal advice, including preparing the required documentation, reviewing tender terms, and ensuring full compliance with all legal and regulatory requirements. We also support our clients during the submission process, negotiation stages, and decision-making, ensuring their interests are safeguarded and projects are executed efficiently.

Additionally, we offer robust dispute resolution services, whether through negotiation or legal proceedings, ensuring favorable outcomes for our clients.

Our commitment is to deliver tailored legal solutions that address the specific needs of each client, whether in large government projects or smaller private tenders. Contact us today for comprehensive legal support that ensures your success in public tenders and enhances your competitive position in the Kuwaiti market.