"We are unyielding in our support for a two-state solution that recognizes the rights of Israelis and Palestinians to live in peace and security," he said.
He noted that these issues built on the principles he laid out in his speech to the Muslim world in Cairo in June, saying that his address was followed by a tremendous response from Muslims around the world.
"We have listened. We have heard you. And like you, we are focused on pursuing concrete actions that will make a difference over time - both in terms of the political and security issues that I have discussed, and in the areas that you have told us will make the most difference in peoples' lives," he told them Friday.
Obama also praised Islam and the various elements of the Ramadan observance: "These rituals remind us of the principles that we hold in common, and Islam's role in advancing justice, progress, tolerance and the dignity of all human beings."