The Arab League welcomed the US President Barack Obama's speech on Thursday in Cairo University referring to it as "balanced" and said it would build up positive relations.

Arab League Secretary General Amr Moussa told the press that Obama's speech reaching out to Muslims was "balanced" and paved the way for good relations.

"I feel that the speech was balanced and offered a new vision of rapprochement regarding relations with Islamic states," Moussa told reporters.

Obama earlier had delivered a keynote speech at Cairo University in which he reiterated his support for a sovereign Palestinian state, and called for Jewish settlements in the occupied West Bank to stop.

The speech showed that the US "will deal with the region's issues with a sense of balance, this includes the Palestinian question, the end to Israeli settlements, Palestinian rights which must be respected," Moussa said.

He said Obama had "reflected the reality on the ground" when mentioning both Hamas and the Palestinian Authority as part of the Palestinian people.

In the speech, Obama vowed that the US would not turn its back on the "legitimate" Palestinian aspiration for a state, saying two states are the "only resolution." The US leader also said Palestinian violence must end.

Meanwhile, The Assistant Secretary General for Palestinian Affairs in the Arab League Ambassador Mohammad Sabeeh also told the press that Obama's speech is in general positive, as he referred to the Palestinian cause.

He added, Obama's assurance of the US commitment to stop Israeli settlements is a start towards peace in the region. Clarifying that this speech is aimed at reconciliation and reforming the US image in the Arab and Islamic Worlds, assuring that the Arab League welcomed his visit to Saudi and Egypt.

Sabeeh called upon the Arab countries to invest in this speech; on the other hand, he called upon the US not to use its right to "veto" against settlements and Israeli violence.