BAGHDAD, Nov 18 (Reuters) - Iraq said on Tuesday it will hold provincial elections on Jan. 31, paving the way for the first vote since the country pulled itself back from the brink of all-out civil war.

A statement from government spokesman Ali al-Dabbagh's office said the date was set by the cabinet. It is the latest that the election could be held under a law passed by parliament in September.

The election is expected to re-draw Iraq's political map by redistributing powerful regional posts, and is seen as an important step in reconciling warring groups, some of whom complain that they are under-represented.

Tough battles could be fought between rival Shi'ite factions in the oil-producing south and between Kurds and Arabs in the north. Sunni Arabs, many of whom stayed home during the last regional vote, will be clamouring for a greater share of power.

The polls could also see tribal leaders who helped drive al Qaeda militants from Iraq's Sunni heartlands gain power at the expense of traditional Sunni Arab political parties.

With bigger provincial budgets swelled by high oil revenues at stake and many more people expected to take part, the vote should be more fiercely contested than the last local polls.

That will provide clues on how Shi'ite and Sunni Arab and Kurdish factions may fare in national polls expected late next year. U.S. officials expect an increase in bomb and gun attacks against political figures as the date approaches. (Reporting by Aws Qusay; Writing by Tim Cocks; Editing by Dominic Evans)

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