The 20-member Central Executive Board (MYK) met on Thursday under the current Chairman and Prime Minister Erdoğan, who was elected president earlier this month, to decide on Davutoğlu's name as the new leader of the party.

The decision also means that Davutoğlu will be the next prime minister, as the chairman of the ruling party will be tasked with forming the new government.

Outgoing President Abdullah Gül predicted on Tuesday that Davutoğlu will become the new chairman in his speech made during his farewell reception.

Davutoğlu, who has no strong support among ruling party deputies, is apparently backed by Erdoğan. Many believe Davutoğlu's nomination was imposed on the party by Erdoğan, who has indicated that he wants to rule the government with a low-key figure in the prime ministry serving by his side as head of state.

The next chairman will be voted in at the AK Party's extraordinary congress on Aug. 27, a day before Erdoğan is officially inaugurated into the presidency.

There are growing signs of discontent among party deputies, especially heavyweights who are edging toward the party-imposed three-term limit rule.

Deputy Prime Minister Bülent Arınç said in June that that he has no intention of being the next prime minister if Erdoğan is elected president, adding that he favored Gül for the post.

Gül made it clear that he will return to the party after departing from the presidential post, reversing his earlier position. Back in mid-April, Gül said that a “Putin-Medvedev model” under which he would swap roles with Erdoğan is not suitable for Turkey. He added that he does not have any political plans for the future under today's circumstances.

He said last week, however, that it is only natural for him to return to the party he helped establish in the first place, signaling that he may shift the balance of power in the ruling party.

Erdoğan and his loyalists rushed to announce the date for the party congress on Aug. 27, a day before Gül steps down from the presidency. That was interpreted as a tactical move to sideline Gül from the party.

Who is Davutoğlu?

An academic-turned-diplomat, Davutoğlu has been the Foreign Minister of Turkey since 2009, after serving as chief foreign advisor to the prime minister. He started out as a very hopeful diplomat, yet a series of failures on the foreign policy front left him with little-to-no success stories to boast about.
His signature foreign policy theme of “zero problems with neighbors” has been mocked as “zero neighbors” since Turkey was left with a legacy of failure in the Middle East and beyond.
Turkey's relations with the US, its main ally, have been troubled by Erdoğan's implicit references accusing the US with the involvement of corruption scandal that implicated him, his family members and business associates. His harsh discourse over Egypt and Israel complicated matters with the US further. The accession talks with the EU have been stalled with the reversal of democratic reforms, political interference into judiciary and worsening press freedom.
In the Middle East, Turkey is practically sidelined with the only ally remaining being Qatar. As such, Turkey's capacity to influence events in the region has significantly diminished. The three-year Syrian crisis has not been resolved, and Turkey, at odds with the Damascus regime, is sheltering over a million refugees.
Turkey's hostage crisis entered its 71st day on Thursday and there is still no word about the release of 49 people who were kidnapped from Turkey's Mosul Consulate General in June by the Islamic State of Iraq and the Levant (ISIL), while the public and the media are not able to question the issue due to a gag order imposed by the government.
Turkish foreign policy was criticized for shifting its main strategic priorities toward Russia, and China and away from the West and NATO military alliance.
Turkey's main opposition leader Kemal Kılıçdaroğlu called him a small-time foreign minister on Wednesday.
“Turkey has grown lonely in the world. It has grown lonely in the Middle East, the Far East, the US and Europe. I once called Davutoğlu a small-time minister. I still call him that. And he will be recognized for being so,” said Kılıçdaroğlu told Today's Zaman in an interview.

Shape of the next government

Erdoğan has openly declared that he will exercise the full powers of the presidency -- including the chairing of Cabinet meetings – and will likely select loyalists to head Cabinet positions with important portfolios, leaving the next prime minister little room to maneuver.
Yalçın Akdoğan, Erdoğan's chief political aide and an Ankara deputy, was mentioned as a new name that will find a place in the Cabinet, possibly as the deputy prime minister. National Intelligence Organization (MİT) chief Hakan Fidan has also been cited as potential foreign minister of Turkey if Davutoğlu is chosen as prime minister.
There are unconfirmed reports that the economic team, headed by Deputy Prime Minister Ali Babacan and Finance Minister Mehmet Şimşek, will remain in place in order to not scare foreign investors. Both ministers have been credited for their roles in successfully managing the economy for years.
Many believe it would spell terrible news for the economy if Erdoğan decides to replace Babacan with his chief economic aide, Yiğit Bulut, who will do whatever is necessary to please his boss rather than providing sound and reasonable policies for the market. Bulut has been harshly criticized in the past for his unconventional policy recommendations. For instance, he once claimed that Turkey would no longer need Europe in the future, stating that the “new West” consists of the United States alone. Writing for the pro-government Star daily, Bulut said: “I'll state it in clear terms: In the new equation, the new West for Turkey means only the US. We no longer need Europe and its material and moral affiliates, which may become a burden on us.”
In addition to Bulut, Numan Kurtulmuş, the ruling party's deputy chairman who is responsible for economic affairs, was also cited as possible candidate to replace Babacan or Şimşek. Kurtulmuş is not currently a deputy in Parliament.
Justice Minister Bekir Bozdağ may also be replaced in the next government with Mustafa Şentop, a professor of law and deputy chairman in the AK Party.
Binali Yıldırım, the former transportation minister who allegedly handled all the money traffic on behalf of Erdoğan with businessmen who provided kickbacks in exchange for lucrative contracts and tenders, may also find a place in the government.
It was rumored that Yıldırım is at odds with Davutoğlu.