The BBC's correspondent in Cairo, Heba Saleh, says the Egyptian authorities have always argued that a party based on religion would deepen sectariandivisions in a country with a sizeable Christian minority.
But, Obama said, a functioning Iraq ultimately will depend on the capacity of the Iraqi people to unify themselves, get beyond sectariandivisions and set up a government that works for the people.
But he warned that the deep ethnic and sectariandivisions in the country meant that it would be difficult "to put those pieces back together" if there was an implosion of the Syrian state.
The draft claims that the Programme for Government reflects the Executive's commitment to building a more shared learning environment and goes on to argue that "it is vital that this process addresses sectariandivisions and results in a less segregated and more shared school system".