Kuwaiti students have kicked off a campaign to discourage Arab countries from "normalising" relations with Israel, amid anger over Washington's decision to recognise Jerusalem as the capital of Israel.

The National Union of Kuwaiti Students launched the campaign dubbed "Kuwaiti against normalisation" this week by putting up posters across the capital Kuwait city.

"At a time when Zionist ambitions are escalating to creep deeper into Arab countries, our campaign has come to realign the Arab compass in the right direction," the student union said on Twitter.

"The campaign has been launched from the heart of the Kuwaiti capital to confirm that the Zionist entity is an occupier and normalisation is unacceptable," it added.

The union has put up campaign posters in advertising space across the city, warning that trade and cultural ties with Israel are considered normalisation.

"Normalisation: Dealing with the Zionist entity as a state and not as an occupier," reads one of the posters.

Social media users have hailed the efforts of the student union with many sharing images of campaign posters.

"The National Union of Kuwaiti Students is a role model for all Arabs. Let us learn from these young men and women," said Lebanese academic Asad Abukhalil.

US President Donald Trump's decision in December to relocate the US embassy to Jerusalem from Tel Aviv triggered deadly clashes in Palestinian territories and sparked widespread anger across the Muslim world.

Israel seized control of the eastern part of Jerusalem in the 1967 Middle East war and sees the whole of Jerusalem as its undivided capital, something not accepted by the international community.

Dozens of people took part in an authorised but rare protest in Kuwait City in December to denounce Trump's move.

Kuwait, like most Arab countries, has no diplomatic or commercial relations with Israel and has rigorously implemented a law boycotting Israeli goods.

A recent deluge of reports have claimed that Saudi Arabia and the United Arab Emirates have sought rapprochement with Israel.

The Gulf states' deep distrust of Shia power Iran is shared with Israel and has reportedly helped thaw relations.