Making what is likely his final presidential visit to America's historic allies, Obama posed for a summit photo with the six regional leaders, including Saudi King Salman, before beginning about four hours of talks at a royal palace.
With nine months left of his term, the president is also again seeking to reassure his Sunni allies upset over American overtures to their regional rival, Shiite Iran.
The summit comes after Washington reported progress in recent months against the Sunni extremists of IS, who seized large parts of Iraq and Syria.
In a bid to keep up the momentum against the jihadists, Defence Secretary Ashton Carter - in Riyadh with Obama - announced on Monday that the US will send more troops and Apache attack helicopters to Iraq.
Washington also wants to emphasise the reconstruction of cities taken back from IS.
Yesterday, Carter pleaded for greater Gulf financial and political involvement in Iraq, which is battling an economic crisis as well as the extremists.
Carter made the comments after meeting his Gulf Cooperation Council counterparts.
Sunni support for "multisectarian governance and reconstruction" in Shiite-majority Iraq will be critical to ensuring the defeat of IS, the Pentagon chief said.
On the eve of the summit, US Secretary of State John Kerry was also in Riyadh, where he held talks with Deputy Crown Prince and Defence Minister Mohammed bin Salman.
Bahrain's King Hamad said in a statement that the summit "clearly reflects outstanding relations between the GCC countries and US".
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