The nomination ceremony was held with the attendance of the country's major political figures in contrast to the two previous ceremonies this year for PM-designates who have since stepped down from their posts.
The newly-appointed prime minister now has a month to form a new cabinet and present it to parliament for approval, Sputnik reported.
Al-Kadhimi's designation comes as his predecessor Adnan Zurfi ended his bid to form a government.
Prior to Zurfi, Mohammed Allawi attempted to form the cabinet but was rejected by the parliament which led to his resignation on 1 March.
Al-Kadhimi, the 53-year-old head of Iraq's National Intelligence Service, has been rumored since December to be in line to be head of the Iraqi government.
Iraq has been in political turmoil over the position of a new prime minister who will form a transitional government to lead the nation to early elections. The post has been occupied by Adil Abdul-Mahdi since October 2018. However, in November last year he announced his resignation and has since been in a caretaker position.
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