At that time, the two most active anti-Saddam groups were the SCIRI and al-Dawa; both were Iranian-backed Islamic Shi'ite parties, originating from Iraq, but operating from Iran from which they received support.

Both parties were disagreeable to[citation needed] the western powers, and Saudi Arabia, who had long poor relations with Iran.

The INA was thus set up to be an alternative, largely funded by money from Saudi Arabia; with extra support coming from the UK and the United States.

In August 1995, Saddam's son-in-law, Hussein Kamel al-Majid authorized the INA to operate from Jordan after he too defected.

With the rift between the United States and the Iraqi National Congress, the INA's role was further enhanced and Allawi was declared Prime Minister of Iraq on 28 May 2004.