US President, Barack Obama, has started his latest bid to repair ties with the Muslim world as he arrived in Saudi Arabia, which is home to Islam's two holiest sites in Mecca and Medina.

Obama was welcomed by King Abdullah of Saudi Arabia at Riyadh's main airport on Wednesday. The two leaders then headed to the king's horse farm for meetings.

Obama praised the long history of US-Saudi friendship and the strategic relationship between the two countries.

He added he is confident that the US and Saudi Arabia could make progress on a variety of issues of mutual interest. Obama and King Abdullah are expected to discuss US overtures to Iran, the Mideast peace process and the surge in oil prices.

Obama's talks with the monarch come a day before the US president is set to deliver a speech in Cairo on the US relationship with the world's 1.5 billion Muslims.