Ali al-Zaidi’s government formation efforts officially began on Monday after Iraq’s president tasked him with building the country’s next cabinet. The nomination arrived just before the constitutional deadline expired. Meanwhile, political leaders quickly welcomed the move while analysts raised questions about Zaidi’s past banking connections.
Ali al-Zaidi government formation talks now dominate Iraq’s political scene after months of negotiations among Shiite parties. Furthermore, Iraqi leaders hope the process will end the country’s prolonged political uncertainty.
In a public statement, Ali al-Zaidi thanked President Nizar Amedi for completing the constitutional process within the required timeframe. In addition, Zaidi pledged cooperation with all political forces to form a government that addresses public demands.
Zaidi stated that his future cabinet would focus on security, stability, and economic development. Moreover, he promised to strengthen state institutions and improve services across Iraq.
Iraq held parliamentary elections in early November. Later, lawmakers elected parliament’s leadership in December. Then, parliament selected Patriotic Union of Kurdistan nominee Nizar Amedi as president on April 11.
Under Iraq’s constitution, the president must assign the largest parliamentary bloc’s nominee within 15 days. Consequently, the Coordination Framework nominated Zaidi on the final constitutional deadline.
However, the nomination followed weeks of intense disagreements inside the Coordination Framework. The alliance includes 12 major Shiite political factions. Despite internal disputes, leaders eventually agreed on Zaidi as a compromise candidate.
President Amedi announced the decision on X shortly after the nomination. He described the move as an important constitutional step. Furthermore, he urged all political parties to support the government formation process.
Amedi also expressed hope for a government representing all Iraqis. Additionally, he encouraged political blocs to cooperate quickly to avoid further delays.
Parliament Speaker Haibet al-Halbousi also welcomed the nomination. He praised political leaders for respecting constitutional deadlines. Moreover, he called for a government capable of responding to citizens’ needs.
Outgoing Prime Minister Mohammed Shia’ al-Sudani congratulated Zaidi as well. Sudani pledged full cooperation during the transition period. At the same time, he emphasized the importance of national consensus in shaping Iraq’s next administration.
The Coordination Framework also praised Sudani and former Prime Minister Nouri al-Maliki for withdrawing their candidacies. According to the alliance, the withdrawals helped ease political tensions and break the deadlock.
Ali al-Zaidi’s government formation discussions nevertheless faced immediate controversy after analysts revisited his banking background. Attention quickly shifted toward al-Janoob Islamic Bank, where Zaidi previously served as chairman.
The Central Bank of Iraq banned the bank from conducting U.S. dollar transactions in February 2024. Authorities introduced the restrictions during a broader crackdown on financial fraud and illegal dollar transfers.
However, the bank continued operating with other currencies after the restrictions took effect. Iraqi officials said the measures aimed to protect the country’s financial system from corruption and money laundering.
The restrictions followed meetings between Iraqi officials and senior US Treasury representatives in Baghdad. American officials encouraged stronger financial oversight and tighter banking regulations.
Reuters reported that Brian Nelson discussed efforts to protect Iraqi and international financial systems from criminal activities during the visit.
Zaidi holds degrees in law, finance, and banking. Nevertheless, uncertainty remains over whether he still maintains ties to al-Janoob Islamic Bank. Officials have not clarified when he officially left the bank’s leadership position.
Political observers now expect difficult negotiations over cabinet positions in the coming weeks. Meanwhile, many Iraqis continue watching closely for signs of political stability and economic reform.
