Kuwaiti government stresses equality in tender allocations

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KUWAIT CITY, Feb 29: A recent directive issued to all government agencies by the Council of Ministers emphasized the importance of ensuring equality between Kuwaiti-origin (local) and Gulf-origin (national) products in tender allocations, reports Al-Qabas daily. The directive stressed adherence to the legal opinion provided by the Fatwa and Legislation Department, which concluded that local products should not be given preferential treatment over national ones by more than a 20% margin, in line with tender laws regarding local versus imported goods.

Disagreements have surfaced among government bodies and regulatory authorities regarding the interpretation of Article 62 of Law No. 74 of 2019, amending certain provisions of Law No. 49 of 2016 concerning public tenders. This article prioritizes public procurement as follows: local products meeting specifications and conditions, with prices not exceeding similar imported products by more than 20%, should be awarded bids. Despite the Audit Bureau advocating for a 20% price preference for local products while differentiating between local and national producers, government agencies interpreted equality between producers differently, citing international agreements between Kuwait and Gulf Cooperation Council countries.

This discrepancy led oversight agencies to intervene, resulting in a decision by the fatwa and legislation department for equal treatment of all producers. Local industrialists have stressed the importance of supporting Kuwaiti national products, similar to practices in Gulf countries. They highlighted court rulings favoring Kuwaiti products in various tenders and emphasized the role of supporting local industries in diversifying the economy. Prioritizing local products in government tenders and projects, they argue, would encourage entrepreneurship, job creation, and stimulate small and medium enterprises, adding value to the economy. One perspective is based on the Gulf Agreement signed in December 2001, supplementing the Gulf Free Trade Area agreement ratified by the National Assembly in November 1981. This agreement mandates equal treatment of citizens across member states in economic fields and gives precedence to its provisions over local laws and regulations.

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