Kuwait to reopen tenders for public-private developments

• 23 large projects to be re-tendered
• Mix of existing and new developments
• Seeking consultancy to manage process

Kuwait intends to reopen large state-backed projects to fresh competition as it seeks to attract more private investment and improve the way public services are delivered.

To kick off the process, the government has issued a tender seeking a consultancy that will oversee the re-tendering of 23 public-private partnership (PPP) deals.

The 23 are a mix of real estate, infrastructure and municipal assets. They include existing state-owned developments such as the Fahaheel waterfront (Al Kout) – a built retail and marina complex – and public markets such as Al-Mubarakiya and Kuwait Market.

Others involve possible new phases or redevelopments at existing sites, such as phase 5 of the Marina Mall.

Kuwait’s PPP Authority, which is managing the process with the Ministry of Finance, said the winning consultancy would be tasked with carrying out feasibility studies, preparing tender documents, evaluating bids and overseeing the transactions through to financial close.

The authority did not say why the projects were being tendered again, but Kuwait’s broader PPP programme has experienced slow execution in recent years.

Industry reports show that relatively few projects have reached financial close. Regulatory and procedural hurdles have been cited as major challenges.

Kuwait is seeking to expand private sector participation as it looks to diversify its economy away from oil, which accounts for about 90 percent of government revenue and roughly half of GDP.

While neighbours such as Saudi Arabia and the UAE are accelerating mega-projects, overhauling regulations and attracting more foreign investment, Kuwait has struggled to convert its oil wealth into sustainable growth.

The country also faces rising public-sector wage and subsidy costs, which limit its ability to fund large infrastructure projects directly and slow progress on its Vision 2035 strategy. This increases the importance of private funding.

Investor sentiment toward Kuwait has improved slightly over the past year, with expectations of economic reforms and increased infrastructure spending. 

Confidence was buoyed by the suspension of parliament in 2024 for up to four years, after years of political gridlock had slowed reform efforts.

Further reading:

• Bank Muscat closes its branch in Kuwait
• Kuwait awards $4bn port contract to Chinese company
• Kuwait oil production costs up more than 1,200% since 2000

In January last year, Kuwait’s finance minister said around 370 projects worth $42 billion had been included in the country’s 2025-26 draft budget.

Still, Kuwait is forecasting a fiscal deficit of KWD6.31 billion ($20.4 billion) for 2025-26, up 12 percent on the previous year. Its breakeven oil price has risen above $90 a barrel, well above the government’s assumed price of $68.

Bidders for the consultancy role must have at least 10 years’ experience advising on comparable PPP or procurement projects and be registered with Kuwait’s Central Agency for Public Tenders.

Proposals must be submitted by March 5.