Exclusive: President Bush in Saudi Arabia

The president said he believes it is the right time to renew the Israeli-Palestinian peace process because "the environment has changed," both with the leaders involved and the support of the Arab world.

"It's going to be tough," the president said, but he believes that by the end of his term in office there will be a deal for a Palestinian state.

When asked whether that deal would address "core issues," for the first time the president said, "I do believe so."

"I have talked to these leaders face to face," he said. "I have asked them point blank, 'Do you understand how difficult these issues are?' Yes. 'Are you prepared to make the painful political compromises?' They say they are."

Despite that optimism, the president also said that he feels misunderstood in the Middle East.

"My image [is] 'Bush wants to fight Muslims.' And, yes, I'm concerned about it. Not because of me, personally. I'm concerned because I want most people to understand the great generosity and compassion of Americans," he said.

"I'm sure people view me as a warmonger and I view myself as peacemaker," the president said. "They view me as so pro-Israeli I can't be open-minded about Palestinian peace, and yet I'm the only president ever to have articulated a two-state solution. And you just have to fight through stereotypes by actions."

The president said he hopes to change that image by opening a dialogue and letting "the results speak for themselves."

"I mean, when this democracy in Iraq solidifies and emerges and is whole, people will understand what I meant about the democracy agenda. People will know that my view is not American democracy, but it's freedom based upon certain principles that honors the traditions and culture of the host country."

Changing Perceptions

Bush said despite Saudi Arabia's connection to some of the Sept. 11 hijackers and terrorism ideology in general, he views the Saudis as "our friends." He spoke of meeting with Saudi entrepreneurs and business leaders during his trip who worry that Americans view them as enemies, not friends.

"There's a lot of really good people here," Bush said. "Look, you can't deny the fact that some, a majority, of the terrorists came from Saudi, but you should not condemn an entire society based upon the actions of a handful of killers."

The president stressed the importance of fostering business connections and cultural and education exchanges between the two countries.

"If Americans are concerned about U.S. perceptions in the Middle East, the best way to defeat that perception is through opening up our colleges and universities," he said. "And I believe we can make sure that, as best as we can, terrorists don't come to our country, and at the same time, be more open."