Beirut  - Lebanon's newly-elected President Michel Suleiman took office Monday as Lebanon's 12th President after his election was backed by world and Arab leaders as well as local officials.

"President Suleiman is set to be Lebanon's arbitrator between the political factions during the dialogue he will head soon," Burtos Harb, a member of parliament loyal to the ruling majority told Deutsche Presse-Agentur dpa.

Suleiman was welcomed to the presidential palace in Baabda, 15 kilometres east of Beirut, by an official ceremony, where 21 cannon shots were fired.

The palace has been vacant since president Emile Lahoud stepped down in November 2007.

"With president Suleiman, Lebanon will witness an era of transparency and balanced relations with all countries whether they are Arab or foreign countries," said Ousama Safa, a Lebanese political analyst.

Suleiman's first official engagement as Lebanon's president will be a tour of Arab nations that will take him to Qatar, Saudi Arabia, Syria, Egypt and UAE.

This will take place as soon as he is done with the government formation process and once the Cabinet gets a vote of confidence, a close aide of the new president said.

"Let us unite ... and work towards a solid reconciliation," the 59-year-old former army commander said after being sworn in.

Most Lebanese, either from the opposition led by Hezbollah or the ruling majority which is backed by the west, praised Suleiman's speech and described it as "a speech of a balanced man who will take the country into a safe passage."

Cabinet minister Marwan Hamadeh, who is loyal to the majority described Suleiman's speech as "truly historic."

Hezbollah MP Nawar al Sahali told dpa "his speech was an address to all the Lebanese that unity and dialogue can solve any problem."

The celebrations marking Suleiman's election went on throughout the night in the capital and in his hometown of Amsheet, 40 kilometres north of Beirut.

Fireworks filled the skies of Beirut, as cars roamed the streets until the morning hours carrying pictures of the new president.

People were seen dancing until dawn in the streets of Amsheet.

"Hail the real leader of this country," shouted a woman in Amsheet.

Suleiman's election came days after bitter political deadlock had threatened to plunge the nation into all-out civil war.

The international community has congratulated Suleiman and hailed his election as Lebanon's new president as a crucial first step in reuniting the divided nation.

Suleiman was elected by 118 votes in a much-delayed parliament session attended by Arab and Western dignitaries that followed a deal brokered last Wednesday in Qatar between the rival Lebanese politicians.

House Speaker Nabih Berri, who is close to the opposition described Suleiman's election "as a historic moment."

"I ask God to help you succeed in steering the Lebanese ship to a safe haven..., " Berri said.

Suleiman's main challenge will be to impose himself as a neutral figure and reconcile the ruling coalition and the opposition.

His second challenge will be finding a way to discuss Hezbollah arms at the negotiations table, which he will head after he names a premier to form the national unity cabinet.

Analyst Charles Ayoub, close to the opposition, told dpa "Suleiman will not disarm Hezbollah but will work on a strategic defence plan during which he will benefit from the Hezbollah military experience fighting Israel and will work on organizing the arms so that they will not be used internally."

Hezbollah has been leading a war since the 1980s against Israel. The Shiite movement was the only militia not to be disarmed after the 1975-1990 civil war in the country ended because it was considered "a resistance against an occupying force (Israel)."

Hezbollah, after a dispute with the government on May 6, managed with its allies to take control of large parts of the capital. The clashes erupted when the government of premier Fouad Seniroa decided to probe a Hezbollah communication network. Six days of violence throughout Lebanon led to the killing of 82 people.

Bickering between the two camps had left the presidency vacant since Lahoud's term ended. Nineteen previous attempts to get lawmakers together to elect a successor failed.

With Suleiman elected, the rival sides will now form a national unity government in which the opposition has veto power, and draft a new electoral law for a parliamentary election due next year.

Suleiman in his speech vowed to mend tense Lebanese-Syrian relations and said he would seek friendly relations with Syria, Lebanon's former powerbroker which has been accused by Washington of stoking the crisis.

"I think relations between Lebanon and Syria will be good during Suleiman's six-year term and that they will be based on mutual repsect," Analyst Amin Umoriyeh said.

Syrian president Bashar al Assad was among the first leader who congratulated Suleiman on his election. (dpa)