Agriculture and livestock do not play a significant role in Kuwait's economy because of the country's physical conditions: its location in one of the most arid spots in the world and a shortage of fresh water. It is estimated that only one percent of Kuwait's land is under cultivation. In 1997, agriculture only contributed 0.5 percent of the GDP.

There are two main agricultural regions with more than 1,000 farms, Abdali in the northeast near the Iraq border and Wafra in the south; there are also a few farms in the Al-Jahra area. Because of Kuwait's climate, artificial growing methods in climate-controlled greenhouses, such as hydroponics, are used for crops such as tomatoes, melons, strawberries, cucumbers and onions. Irrigated alfalfa is also grown as fodder for livestock.

In 1983, the government established the Public Authority for Agricultural Affairs and Fish Resources (PAAAFR) that is responsible for agriculture, livestock and fisheries in Kuwait. The PAAAFR carries out extensive research in an ongoing effort to develop highly productive plants that resist diseases and survive in the harsh environmental conditions. The government also actively encourages agriculture and livestock production through interest-free or low-interest loans, annual farm subsidies, and grants for drilling water wells for agricultural purposes.

In 1987, H.H. the Amir Sheikh Jaber Al-Ahmad Al-Sabah mooted the idea of a National Greening Plan for Kuwait, an ambitious 20-year plan for "greening" the country. The National Greening Plan is overseen by the Kuwait Institute for Scientific Research (KISR) which works along with PAAAFR. KISR and PAAAFR work constantly to improve agricultural production in Kuwait. As part of the National Greening Plan, PAAAFR and KISR have undertaken several major projects. In 1998, 90,000 specially designed olive cuttings that were able to withstand Kuwait's harsh environment were distributed to farmers. Because Iraqi forces destroyed almost all of Kuwait's date palms during the 1990-1991 occupation, KISR has been striving to cultivate 111 palm trees for each square mile of land, leading to an 89 per cent increase in the number of palm trees since 1991. One of their most ambitious projects has been the visualisation of a plan to use wastewater for farm irrigation.