Iraq’s chaotic and byzantine system of governance has finally moved to appoint a new prime minister. The decision comes 167 days, around five and a half months, after Iraq held elections in November 2025. The new prime minister-designate is Ali al-Zaidi, described as a businessman with a background in banking. The bank he ran has been accused of corruption.
The real story of Zaidi is that he is largely unknown and appears to have been chosen almost by chance, as if Iraq’s politicians simply settled on a random figure to lead the country. In reality, the underlying political dynamics often result in the selection of unqualified, relatively compliant, and weak figures for the premiership.
Why is Iraq like this? The country’s process for appointing a prime minister is highly unusual. After the US removed Saddam Hussein, Iraq drafted a new constitution. On the surface, both the constitution and the political system appear normal, and the country has held elections since 2005, functioning as a democracy. However, following decades under a Sunni Arab strongman, Iraq has in recent years gravitated toward weak leadership. One key reason, likely the central one, is that Iran prefers Iraq to remain weak.
Iran has deep influence in Iraq via the Popular Mobilization Forces, a group of Iranian-backed militias. It also exerts significant influence through various Shi’ite political parties. Since 2005, Iraq’s political system has divided leadership roles along religious and ethnic lines, similar to Lebanon. The president is Kurdish, the prime minister is a Shi’ite Arab, and the speaker of parliament is a Sunni Arab.
What is known about Zaidi?
The prime minister is the most powerful official in the country and is chosen by consensus among the Shi’ite political parties. These parties come together under the Coordination Framework. This arrangement ensures that the Shi’ite bloc remains unified and reduces the likelihood of appointing a prime minister who is overly aligned with Kurdish interests. It also allows Iran to maintain influence and control behind the scenes. A weak prime minister ultimately serves Iran’s interests.
During the recent Iran conflict, for instance, there were around 1,000 attacks in Iraq by Iranian-backed militias and Iran. These attacks targeted US forces as well as the Kurdistan Region. Having a weak prime minister means no one will confront the Iranian-backed militias. The militias often have politicians in parliament, making it nearly impossible to separate them from the state. This is similar to how Hezbollah operates in Lebanon. In Iraq, however, the situation is even worse.
What is known about Zaidi? He served as the director of Al-Janoob Islamic Bank and CEO of Dijlah TV, according to reports. He holds a master’s degree in finance and is also said to own the Taawon Hypermarket shopping centers in Baghdad. Rudaw media in Erbil noted that “His designation, while welcomed by the country’s top leadership, also drew scrutiny over his past ties to a bank that has faced restrictions on conducting US dollar transactions as part of a wider crackdown by Baghdad on the illegal use of the greenback.”
Some politicians welcome the appointment
Zaidi expressed “gratitude and appreciation” to Iraqi President Nizar Amedi for “ensuring the completion of the constitutional process within its designated timeframe,” Rudaw reported. He said he will work “with all political parties to form a government that meets citizens’ demands, strengthens security and stability, and achieves comprehensive development.”
Other politicians have welcomed his appointment, largely because Iraqis are exhausted after a five-month process to find a leader. Iraq’s President Nizar Amedi wrote on X that “In line with our constitutional responsibilities, we have tasked the nominee of the largest parliamentary bloc, Ali al-Zaidi, with forming the new government.” Iraq’s Speaker of Parliament Haibet al-Halbousi also praised Zaidi.
According to one report, Zaidi’s appointment was supported by current Prime Minister Mohammed Shia al-Sudani, as well as former prime minister Nouri al-Maliki. Maliki had sought the position, but the US opposed his candidacy. Qais Khazali, head of the Asaib Ahl al-Haq militia, also supported Zaidi. Reports say that Zaidi was involved in a bank accused of evading US sanctions and smuggling US dollars. It may have also been linked to “laundering for the Iranian Revolutionary Guards,” an informed observer wrote on X.
Sudani, the current prime minister, wrote, “we extend our congratulations and felicitations to Mr. Ali Falah Kazim Al-Zaidi, on the occasion of his nomination by the forces of the Coordination Framework, which represents the largest parliamentary bloc, and the issuance of the mandate book entrusting him with forming the upcoming government by the President of the Republic, wishing him success in his national mission.”
Masrour Barzani, the prime minister of the autonomous Kurdistan Region of Iraq, wrote on X, “during a phone call with Mr. Ali Al-Zaidi, we congratulated him on his appointment as Federal Prime Minister, expressing our wishes for his success in the mission of forming the new federal government. We also expressed our support for addressing all contentious issues based on the constitution, and our aspiration for Iraq to witness a new era filled with security, stability, and peace.”
In 2025, The Arab Weekly described the accusations against the bank linked to Zaidi: “In the case of Al-Janoob Islamic Bank, ownership traces back to Ali Zaidi, a businessman best known for securing multimillion-dollar government contracts. Likewise, Ashur International Bank is controlled by Wadih Nouri al-Hanzal and his family. As the head of Iraq’s Private Banks League, al-Hanzal holds significant interests across multiple companies, consolidating considerable economic influence. The concentration of financial authority within these powerful familial dynasties underscores a broader pattern of corruption and collusion that the US government has flagged as a serious threat to Iraq’s economic stability. Both Al-Janoob Islamic Bank and Ashur International Bank are controlled by figures deeply linked to the Popular Mobilisation Forces (PMF).”