Article published on the 2009-01-01 Latest update 2009-01-01 11:58 TU
"It is our right to consider this day the day of sovereignty and the beginning of the process of retrieving every inch of our nation's soil," Maliki declared at a ceremony in a palace in the zone and he declared the day a national holiday.
The US keeps control of a huge embassy complex inside the zone and its troops will continue to play an advisory role to the Iraqi military.
According to the bilateral agreement signed in November, Washington, which has 146,000 troops in Iraq, will keep combat forces there until the end of 2011.
Britain, which along with Australia signed a separate agreement two days ago to stay on until the end of July, handed over control of Basra airport on Thursday. British troops had already withdrawn from the southern city and handed over control of the province to Iraqi troops.