Obama announced Rashad Hussain's appointment during a video address to the 7th U.S.-Islamic World Forum meeting in Doha, Qatar.
As his liaison to the OIC, the president said Hussain will continue working to repair U.S.-Islamic relations and develop the types of partnerships Obama called for when he addressed the Muslim world during a speech last year in Cairo.
U.S. relations with the Muslim world became strained after the wars in Iraq and Afghanistan.
In the video address, Obama said he called in Cairo for the U.S. and Muslims to start anew "based on mutual interest and mutual respect" because the relationship had "slipped into a cycle of misunderstanding and mistrust that can lead to conflict rather than cooperation."
He said he looked forward to continuing the dialogue next month when he visits Indonesia, the world's most populous Muslim country. Obama also spent several of his childhood years living in Indonesia with his mother and stepfather.
Obama recounted efforts by his administration to foster partnerships with Muslims on education, economic development, global health, and science and technology. He touched on the plan to remove all U.S. combat troops from Iraq by the end of August, and his administration's efforts to return Israelis and Palestinians to the negotiating table to jump-start stalled peace talks.
Obama also announced a summit on entrepreneurship in April with Muslim business leaders and entrepreneurs from around the world.
The president said Hussain's goal, as special envoy to the OIC, will be to deepen existing partnerships and develop others. The OIC represents nearly 60 Muslim states across four continents and promotes Muslim solidarity in social and political affairs.
Hussain is a deputy associate counsel to Obama who focuses on national security, new media, and science and technology issues. He also has worked with the national security staff to help repair U.S.-Muslim relations. Obama said Hussain is a hafiz of the Quran, meaning Hussain has memorized the Muslim holy book.
Secretary of State Hillary Rodham Clinton was scheduled to speak at the meeting in Doha on Sunday.
Obama is not the first president to name a special envoy to the Islamic conference. In his final year in office, George W. Bush named Texas entrepreneur Sada Cumber, a Muslim, as his special envoy.
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