Examining the Externalities Affecting Kuwait’s Transition to Agricultural Sustainability: PESTEL Analysis

The transition to agricultural sustainability is important yet complex due to the need for market integration among value chains. This study aims to examine the sources of externalities affecting Kuwait’s agricultural system. It uses PESTEL strategic analysis to identify the factors influencing the agricultural sector, and to bridge the gaps among the pillars contributing into agricultural sustainability. The study relies on local policy reviews and stylized facts in analyzing the political, economic, social, technological, environmental, and legal influencers on Kuwait’s agriculture. The PESTEL analysis shows that the political, economic, environmental, and legal practices negatively affect the agricultural production and threaten Kuwait’s food security targets. Nevertheless, concentrating on satisfying the rise in food demand, building consumer trust, and encouraging investments in agricultural innovation and R&D are crucial policies for facilitating the transition to agricultural sustainability.