KUWAIT CITY, Oct 22: Economic expert and former president of the Kuwaiti Contractors Union, Dr. Salah Boursli, said the government’s new structural reforms aim to create new opportunities for the national economy. He praised the reforms for removing bureaucratic obstacles that have hindered private sector growth and the inflow of investment, stressing that these measures would eliminate unjustified commissions previously paid by foreign investors and reduce the burden on the public treasury.
In a statement to the daily, Dr. Boursli commended the amendments to the Public Tenders and Procurement Law, enacted under Decree-Law No. 94/2026, describing them as a significant legislative breakthrough that would directly contribute to improving the overall economic environment. Dr. Boursli also praised the new legislation for explicitly prohibiting the use of local agents in government contracting procedures, as the measure would allow international and multinational companies to participate directly in government tenders and submit their technical and financial bids without the need for local intermediaries. He explained that this would eliminate unjustified commissions previously paid by foreign investors. Removing these commissions and brokerage requirements would also reduce the overall cost of projects and tenders, helping curb financial waste and protect public funds.
The amendments would help address the phenomenon of “sham” projects involving entities that served no real operational or developmental purpose beyond acting as legal fronts for international companies. This would strengthen international investors’ confidence in Kuwait’s institutional integrity. Dr. Boursli noted that raising the threshold for direct contracting by ministries and government entities without requiring prior approval from the Central Agency for Public Tenders (CAPT) would give executive bodies greater flexibility and enable them to implement vital projects more quickly, reducing lengthy administrative and bureaucratic procedures.
He explained that the threshold had fluctuated over the years, having once stood at around KD 4 million before being reduced to KD 75,000. Under the latest amendments, the threshold has been raised to cover tenders valued at less than KD 1 million. Dr. Boursli stressed that the change should be accompanied by an independent post-award oversight mechanism for tenders worth less than KD 1 million. He said the primary objective of such oversight would be to close loopholes that could be exploited by “tender mafias” and individuals involved in manipulation. Dr. Boursli proposed establishing a specialized committee under CAPT to audit and closely monitor contracts valued at less than KD 1 million.
The proposed committee would help protect public funds and prevent large tenders from being divided into smaller contracts to circumvent prior regulatory oversight. He highlighted CAPT’s role in safeguarding public resources and ensuring fair opportunities for all companies. Dr. Boursli stressed that CAPT’s rigorous oversight standards help prevent potential manipulation and strengthen the confidence of multinational corporations seeking to enter the Kuwaiti market. This is particularly significant as the government, under its reformoriented administration, is actively working to eliminate the root causes of corruption, which is a top priority for the government. He explained that the state measures to safeguard public funds, while providing greater flexibility and support to the private sector, would help create a secure and transparent investment environment. These efforts would help curb the activities of fictitious companies, improve Kuwait’s position in global transparency indices, and enhance the national economy’s attractiveness to foreign investment. Dr. Boursli added that the decline in cases involving the misappropriation of public funds reflects the state’s commitment to strictly enforcing the law without exception.
By Najeh Bilal Al-Seyassah/Arab Times Staff
