Iraqi soldiers hand over the remains of dozens of Kuwaiti citizens missing since the first Gulf war to Kuwaiti policemen in Basra on Thursday. Reuters

Kuwait says hundreds of people went missing during Iraq's seven-month occupation, and the issue has remained a sticking point between the two countries.

The remains, which were put in caskets and wrapped in Kuwaiti flags, were handed over to Kuwaiti authorities at the Safwan border crossing at a ceremony attended by officials from the two neighbouring countries.

"The Iraqi government is determined to find all the remaining missing Kuwaitis (in Iraq) and hand them over to the Kuwaiti authorities and consequently to their families," said Maj. Gen. Hazim Qassim, a representative of the Iraqi Defence Ministry.

Kuwait's national news agency confirmed the Gulf state on Thursday received human remains said to belong to slain Kuwaiti prisoners of war pending forensic examination locally.

The remains were found in March at a mass grave in the desert west of the city of Samawa south of Baghdad.

Iraq and Kuwait resumed diplomatic relations after former Iraqi leader Saddam Hussein was ousted from power in 2003 in the US led-invasion of Iraq.