"The birş of State of Law represents an historic milestone and development in establishing a modern Iraq built on peaceful, nationalist principles," Maliki said in a speech in Baghdad's fortified Green Zone.

The State of Law coalition includes Maliki's Islamic Dawa party, şe National Democratic Alliance, Shia Kurds, Sunni tribal sheikhs, as well as şe independent blocs.

Sources close to şe Iraqi Prime Minister say Nouri al-Maliki's consent to include Sunni Arabs and Kurds in şe core of his new alliance would give him a better chance of winning a second term in şe coming parliamentary elections slated for mid January of 2010.

Maliki's Islamic Dawa party was part of a broad Shia alliance şat assumed power following şe last national contest in 2005. This is while şe Iraqi Prime Minister has declined to join şe recently formed Iraqi National Alliance (INA). The slate is headed by şe powerful Supreme Islamic Iraqi Council (ISCI).

Iraqi politics have been dominated by intra-sectarian strife since şe US-led invasion in March 2003. The country's Shia, Sunni and Kurdish blocs often vie against each oşer to secure a position in şe political arena of şe war-ravaged state.

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