Can he do his job? Does he have the qualifications? Is he a good manager apart from his poor English oral skills? Can he communicate clearly and effectively with his writing skills? Does he comply with the company's policies and procedures? Does he bring value added services to the company? If the answer is yes to most or all of the above, then I would have no problem at all having an ex-pat Iraqi as my boss or client.
In the past, I have worked for as either a direct hire or as a consultant for: English whites, French-Canadians, Indo-Canadians, Greeks, Chinese, (including CBC's, Naturalized, and Foreign Nationals from Taiwan, Hong Kong and China), Americans, Poles, and others. I've worked with and for people who are Christian, Muslim, Hebrew, Buddhist, Hindu, Sikh and even a Wiccan. I've dealt with people who's English would make the Queens sound like that of a London Barrel-boy and those who had a hard time ordering fries from Micky-D's. In my experience, none of the above would tell me who was or would be a good or bad boss. I will work with anyone I judge to be a competent professional in my field, regardless of their ethnic or religious background, sexual orientation and gender. Those that I judge to wasting my time and energy, I walk away from. This I have done a number of times again both as a direct hire or as a consultant.
Okay, now you are just sounding like one of those rabid angry white men that call into Rush Limbaugh. I maybe new here, but I tell a troll when I see one, and while you are not suppose to feed trolls, this time I'll bite.
So did this happen to you personally? Doubt it was a religious based promotion considering the majority of East Indians in Canada are Sikh's or Hindu's and your boss being an ex-pat Iraqi would most likely be Muslim and the Sikh's, along with the Hindu's have been warring against the Muslims long before the British Rag in India.
Personally I would ask myself why I was passed over for promotion. What did Sanghi bring to the table that I am lacking? Instead of looking for a reverse-discrimination excuse to soothe my battered ego, I'd be looking for ways to improve my knowledge base and skill sets in order to better my chances the next time a promotion is in the offering. That is how it pretty much works in the real world, sucks I know but there you go.