At the same time, the pontiff apologized to Muslims for a remark he made in 2006 which outraged Islam followers after he linked Muslims to violence in the past.
Pope Benedict clarified he quoted a medieval scholar, but he never intended to directly link present day Muslims with the wave of violence taking place in various parts of the world.
The head of the one-billion strong Catholic Church said, quoted by BBC, "The discrimination and violence which even today religious people experience throughout the world and the often violent persecutions to which they are subject, represent unacceptable and unjustifiable acts."
The dialogue called for mutual respect between followers of the two largest faiths in the world and to heal the tension between the two religions.
"Muslims and Christians have different approaches in matters concerning God... but must consider themselves members of one family," Pope Benedict said.
He challenged the leaders and scholars of both faiths "to overcome past prejudices and to correct the often distorted images of the other, which even today can create difficulties in our relations."
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(Source: AHN)