Kuwait Fruits and Vegetables Industry - Growth, Trends, and Forecast (2020 - 2025)

The country has a total arable land of about 10,600 hectors, which is about 0.6% of the total land area. This domestic production capacity is not enough to cater to the growing demand for fruits and vegetables. Kuwait is the second-most populated country in the GCC region, with the average population growth rate of 3.5%. The country has low domestic production capabilities for fruits and vegetables, as the soil in the region is low in organic content, low-nutrient holding abilities, and poor moisture-retaining capacity. The natural water resources required for irrigation are minimal, with most of the water used being from desalination plants, which consume a lot of electricity; domestic farmers are not able to bear the costs, as there are no subsidies for electricity. Thus, the harsh climatic conditions, and vulnerable water and soil resources are the major constraints faced by the agriculture sector in Kuwait; hence, the country is mostly dependent on the import of fruits and vegetables.

The government of Kuwait is encouraging the agricultural companies to invest in foreign countries that have a comparative advantage in producing certain crops and import their products back into Kuwait. The Kuwaiti government is providing financial incentives to encourage investors in the country to take part in this food security initiative and invest overseas. The Southeastern Anatolia Project (GAP), one of the world's largest and most comprehensive sustainable development projects, focuses on Greenhouse farming in the southeast city. Urfa, one of the most important agricultural centers in Turkey, and hence Kuwait along with Turkey has invested USD 100 million in the greenhouse on a 1000 decare area in this region to export the agriculture products to gulf countries. The Greenhouse Investors and Producers Association (SERA-BİR) and GAP Greenhouse Gardeners Association would also assist in greenhouse cultivation in order to develop the sector.