Iraq’s chaotic system of governance has finally moved to appoint a new prime minister. The decision comes 167 days, or around five and a half months, after Iraq had an election in November 2025. The new Iraqi Prime Minister-designate is Ali al-Zaidi. He has been described as a businessman with a background in running a bank. The bank was accused of corruption.
The real story of Zaidi is that he is not well known and appears to have been picked almost by chance, as if Iraq’s politicians simply found some random person to run the country. The reality in Iraq is that the political problems behind the scenes make it so that the country often selects unqualified, relatively tame, and weak men to be prime minister.
Why is Iraq like this? The country’s appointment process for a prime minister is bizarre in the extreme. After the removal of Saddam Hussein by the US, Iraq drafted a new constitution. On its face, the constitution and the country appear normal, and the country has had elections since 2005.
Iraq functions as a democracy. However, because the country once had a Sunni Arab strongman as president, Saddam Hussein, it has gravitated in recent years to having very weak leaders. One reason for this, probably the key reason, is that Iran prefers Iraq to be weak.
Iran has deep influence in Iraq via the Popular Mobilization Forces, a group of Iranian-backed militias. Tehran also has a deep influence via the various Shi’ite political parties in Iraq. Since 2005, the new politics in Iraq have divided the leadership roles by religion and ethnic group, 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. He is chosen by consensus by the Shi’ite political parties. Those parties come together under what is called the Coordination Framework, which makes sure that the Shi’ites cannot be divided and that a prime minister who is friendly to the Kurds is less likely, and also that Iran can have influence and control behind the scenes. A weak prime minister favors Iran.
During the recent Iran conflict, for instance, there were around 1,000 attacks in Iraq by Iran and its militias, which targeted US forces and also the Kurdistan Region.
Having a weak prime minister means no one will confront the Iranian-backed militias, and the militias often have politicians in parliament, meaning there is no way to unravel the militias from the state, similar to how Hezbollah functions in Lebanon.
In Iraq, the situation is even worse than in Lebanon.
What is known about Zaidi? He was the director of Al-Janoob Islamic Bank and CEO of Dijlah TV, reports say. He has a master’s degree in finance. He 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 says 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 greeted his appointment positively, mostly because Iraqis are exhausted with a five-month-long process to find a leader. Iraq’s President Nizar Amedi wrote on X/Twitter 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 office, but the US opposed Maliki. 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 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.”