ERBIL, Kurdistan Region of Iraq - Iraqi Prime Minister-designate Ali al-Zaidi arrived in Erbil on Saturday to hold meetings with top Kurdish leaders, with Erbil-Baghdad issues and government formation set to take center state in the high-profile dialogue.

The New Region has learned that Zaidi is set to meet with President Masoud Barzani, Kurdistan Region Prime Minister Masrour Barzani, and Kurdistan Region President Nechirvan Barzani during his visit.

Prime Minister Barzani greeted the prime minister-designate upon his arrival at Erbil International Airport on Saturday morning.

Zaidi was nominated for the post on Monday by the parliament’s largest bloc, the Shiite Coordination Framework, after months of internal strife. He is seen as a compromise figure and is relatively unknown in the Iraqi political sphere.

A source with knowledge on the matter told The New Region that Zaidi will discuss the Kurdistan Region's federal budgetary allocations, Article 140 of the constitution, the Peshmerga, partnership in governance and representation, and oil with the Kurdish leaders.

The fair distribution of the Kurdistan Region’s share of the federal budget has long been a point of contention between Erbil and Baghdad, despite an agreement reached earlier this year between both governments to ensure the transfer of the Region’s civil servants’ salaries for the entirety of 2025.

Article 140 of the Iraqi Constitution mandates a process to outline a clear and definitive boundary in the disputed areas by introducing a referendum to determine the will of the residents living on the lands. The implementation of the article has been continuously delayed by the Iraqi government for two decades.

Ashwaq Jaf, a member of the Kurdistan Democratic Party (KDP) Central Committee, said Saturday that Zaidi has received a "strong welcome" by all political forces in Iraq and the Kurdistan Region, adding that his visit to Erbil will see discussion of government formation and outstanding issues

"The political interpretation of constitutional articles has brought the Iraqi temperament to where it is today, so this is what we want, for the constitution to be implemented as it is," she said.

The Kurdish lawmaker further stressed that the attacks by pro-Iran groups, many of whom are on Baghdad's payroll under the auspices of the Popular Mobilization Forces (PMF) on the Kurdistan Region during the recent regional conflict must be prevented by the federal government.

Kurdish authorities welcomed the new premier upon his appointment, stressing the need for the resolution of Erbil-Baghdad disputes based on a constitutional approach.

After holding a call on Tuesday congratulating Zaidi, Masoud Barzani expressed his hope that the businessman's appointment will prove "an opportunity to correct the course of the political process," according to a statement from Barzani Headquarters.

For their part, Masrour Barzani and Nechirvan Barzani spoke of hopes for "a new era filled with security, stability, and peace" and commitment "to working with him for a better future for all Iraqis" respectively.

US President Donald Trump on Friday spoke of his endorsement of the prime minister-designate, describing their relationship as "very strong, very powerful."

"I endorsed him. I'm now in the business of endorsing political leaders from foreign countries, countries that nobody's ever seen before," he said.

Zaidi is notably the former chairman of a bank that has been under US sanctions since 2024 over allegations of money laundering, fraud, and the illegal use of US dollars. 

The prime minister-designate must present a cabinet to parliament within 30 days of his designation.