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DUBAI, Jan 26 (Reuters) - U.S. President Barack Obama said on Monday Israel and the Palestinians should resume peace negotiations, and he praised Saudi King Abdullah for putting forward an Arab plan for peace in the Middle East.

Obama, in his first interview with Arab television since becoming U.S. president, told al-Arabiya his administration would adopt a more comprehensive approach in its relations with the Muslim world.

"It is impossible for us to think only in terms of the Palestinian-Israeli conflict and not think in terms of what's happening with Syria or Iran or Lebanon or Afghanistan and Pakistan," Obama told the Dubai-based Arabic cable channel. "These things are interrelated."

The new U.S. president, who took office last Tuesday, said he had begun to fulfill his campaign promises by naming former U.S. Sen. George Mitchell as Mideast peace envoy and sending him to the region within days of becoming president. Mitchell was traveling to the region on Monday evening.

"Sending George Mitchell to the Middle East is fulfilling my campaign promise that we're not going to wait until the end of my administration to deal with Palestinian and Israeli peace. We're going to start now," Obama said.

He said his administration wanted to begin by listening and talking to those involved in the conflict without prejudging their concerns.

"Ultimately we cannot tell either the Israelis or the Palestinians what is best for them," Obama said. "They are going to have to make some decisions."

"But I do believe that the moment is ripe for both sides to realize that the path that they are on is one that is not going to result in prosperity and security for their people. And that instead, it's time to return to the negotiating table."

SAUDI INITIATIVE

He praised Saudi King Abdullah for the peace initiative he put forward, which calls for Arab peace with Israel in exchange for withdrawal for territories occupied since 1967.

"I might not agree with every aspect of the proposal, but it took great courage to put forward something that is as significant as that," Obama said. "I think that there are ideas across the region of how we might pursue peace."

Noting that he has lived in Muslim countries and has Muslim family members, Obama said: "My job to the Muslim world is to communicate that the Americans are not your enemy."

He urged people in the Muslim world to judge him by his actions, pointing to the decision to close the U.S. prison in Guantanamo, Cuba, where detainees in the U.S. war on terror are being held. He said he also would begin to follow through on his pledge to draw down U.S. troops in Iraq.

Asked about the sharp verbal attacks on him by al-Qaeda leaders responsible for the Sept. 11 attacks on the United States in 2001, Obama said: "What that tells me is that their ideas are bankrupt."

"In my inauguration speech, I spoke about: You will be judged on what you've built, not what you've destroyed. And what they've been doing is destroying things," he said. "I think the Muslim world has recognized that that path is leading no place, except more death and destruction."

On Iran, Obama said he believed it was important to use all the tools of U.S. power with Tehran, including diplomacy.

"It is important for us to be willing to talk to Iran, to express very clearly where our differences are, but (also) where there are potential avenues for progress," he said, adding that the administration would lay out its approach in the next few months.

"If countries like Iran are willing to unclench their fist, they will find an extended hand from us," he said.

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