ERBIL, Kurdistan Region - Iraqi Prime Minister-designate Ali al-Zaidi on Monday affirmed his “determination” to work with all political forces to form the country’s next government, in line with public expectations. 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.
In a statement, Zaidi expressed his “gratitude and appreciation” to Iraqi President Nizar Amedi for “ensuring the completion of the constitutional process within its designated timeframe.”
He also reaffirmed “his commitment to working with all political parties to form a government that meets citizens’ demands, strengthens security and stability, and achieves comprehensive development.”
Iraq held legislative elections in early November, and in late December, parliament elected its speaker and two deputies.
On April 11, parliament elected the Patriotic Union of Kurdistan (PUK) nominee, Amedi, as president. Under the constitution, once sworn in, the president has up to 15 days to task the nominee of the largest parliamentary bloc - the Coordination Framework - with forming a government.
Zaidi’s nomination comes on the final day before the constitutional deadline expires, following weeks of deliberations among the Shiite Coordination Framework’s 12 Shiite parties, which were marked by deep internal divisions.
Reactions
Amedi said in a Monday post on X, “In line with our constitutional responsibilities, we have tasked the nominee of the largest parliamentary bloc, Ali al-Zaidi, with forming the new government.” He added that by doing so, “we have completed the third stage of the constitutional process, which could not afford delay.”
The Iraqi president further wished Zaidi “success in forming a strong national government that represents all Iraqis and meets their aspirations,” while urging “all political forces to support him and cooperate with him to expedite the completion of this constitutional and national duty in a way that serves the interests of Iraq and its people.”
In a similar vein, Iraqi Parliament Speaker Haibet al-Halbousi welcomed naming Zaidi as prime minister-designate, “wishing him success in carrying out this national responsibility in a way that strengthens the work of state institutions.”
Halbousi further expressed “appreciation to the leaders of the Coordination Framework for their commitment to constitutional timelines,” reaffirming “support for efforts to form a government capable of managing the next stage and responding to citizens’ needs.”
Meanwhile, outgoing Iraqi Prime Minister Mohammed Shia' al-Sudani congratulated Ali al-Zaidi on his nomination by the Coordination Framework, “wishing him success in his national mission” of forming Iraq’s next government.
“We affirm our commitment to supporting all options achieved through national consensus, which came as a result of the broad and effective participation of our people in the previous legislative elections,” Sudani added, reaffirming his “commitment to cooperate with Zaidi during the mandate period to complete the requirements for forming the government.”
Of note, the Coordination Framework’s announcement of Zaidi’s naming praised the “historic and responsible positions” of both Sudani and the head of the State of Law Coalition and former Iraqi prime minister Nouri al-Maliki (2006-2014) for withdrawing their candidacies for the premiership and the formation of the next government.
The statement further added that this step “reflects a commitment to higher national interests, helps ease the political deadlock, and allows the Coordination Framework to select a candidate who meets the required criteria for the position of prime minister and is suited to the demands and challenges of the current phase.”
The concerns
Soon after Zaidi’s appointment was announced, Iraqi analysts began highlighting his links to the al-Janoob Islamic Bank.
The bank was banned in February 2024 by the Central Bank of Iraq (CBI) from conducting US dollar transactions as part of broader efforts to reduce fraud, money laundering, and other illegal use of the dollar. It was, however, allowed to continue operating in other currencies.
The CBI’s decision followed a visit by a senior US Treasury official, Brian Nelson, who met Iraqi officials in Baghdad to discuss “how to protect the Iraqi and international financial systems from criminal, corrupt and terrorist actors,” according to Reuters.
“We commend the continued steps taken by the Central Bank of Iraq to protect the Iraqi financial system from abuse, which has led to legitimate Iraqi banks achieving international connectivity through correspondent banking relationships,” Reuters cited Nelson as saying.
Zaidi, who holds a Bachelor’s degree in Law and both Bachelor’s and Master’s degrees in Finance and Banking, previously served as chairman of the board of al-Janoob Islamic Bank. However, it is unclear whether he still maintains any ties to the bank or when exactly he stepped down from the position.