Sweeping updates to Bahrain’s procurement law aimed at speeding up government purchasing while tightening oversight and transparency are set for debate during Parliament’s session tomorrow.
Parliament’s financial and economic affairs committee unanimously recommended approval, in principle, of amendments to Decree-Law No 36 of 2002 regulating government tenders, auctions, purchases and sales.
Committee chairman MP Ahmed Al Salloom said the changes respond to “real operational challenges exposed over two decades of application” while aligning Bahrain with modern procurement standards.
“This is a modernisation exercise, not a relaxation of controls,” he said. “We are giving ministries and state companies the flexibility they need to function efficiently, while preserving the Tender Board’s supervisory authority and the National Audit Office’s oversight.”
A key amendment raises the ceiling for purchases that ministries and government entities can process internally from BD25,000 to BD50,000.
For companies wholly owned by the state, the limit rises from BD50,000 to BD100,000.
Entities must still notify the Tender Board Bahrain of these purchases every three months.
However, MPs deleted a clause that would have allowed the Cabinet to change these limits by decision.
“The committee deliberately removed that phrase to ensure any future change to financial ceilings returns to Parliament, not executive discretion,” Mr Al Salloom said.
The law also replaces rigid auction rules with broader contracting methods governed by executive regulations, allowing public auctions to be conducted physically or electronically – and even managed by private sector operators under strict controls.
One of the most debated additions is a new article allowing entities, with Cabinet approval, to negotiate with bidders in limited cases – where there is a single bidder, where the best bid exceeds the allocated budget, or where bids are within five per cent of the top technical score.
The outcome of any negotiation must still be referred back to the Tender Board for a final decision.
Business groups had warned this could undermine fair competition by revealing prices after bids are opened.
“Negotiation is not open-ended bargaining,” Mr Al Salloom said. “It is a controlled mechanism used internationally to secure better value for public funds when competition is limited or pricing exceeds estimates.”
The National Audit Office confirmed the draft law contains no constitutional violations and does not affect its supervisory powers.
Officials told MPs there are 3,200 accredited government employees serving on internal tender committees across entities, with all internal tenders published on the Tender Board website to maintain transparency. The Board also adjudicates supplier grievances.
Twenty per cent of tenders continue to be earmarked for SMEs, supported by a dedicated unit.
The Bahrain Chamber and the Bahrain Businessmen’s Association both backed the reforms, calling them a qualitative step that enhances competitiveness, while urging clear safeguards on negotiations.
The Industry and Commerce Ministry said SME privileges remain unaffected because preferential policies apply across all procurement methods.
“Procurement systems must evolve with market prices, technology and administrative realities,” Mr Al Salloom said. “But evolution must come with accountability – and this law achieves that balance.”
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