An ISIL spokesperson said that the group chief had called on all Muslims to swear loyalty to al-Baghdadi and support him.
The group has managed to carve out a huge part of the terriroty that has been erased between Iraq and Syria. The announcement was made on the first day of Ramzaan, the holy month for Muslims.
The spokesperson said that the new state running from northern Syria to the Iraqi province of Diyala. This is likely to have an impact on Iraq that is already witnessing a war within between the Sunni militants and the Iraqi government
The formation of a new state can trigger the infighting among the Sunni militants who have joined forces with the Islamic State in its fight against Iraqi Prime Minister Nouri al-Maliki and his Shiite-led government further.