In 1091, a group of Qarmatians sacked Basra, while the Isma'ilis under the leadership of Hassan-i Sabbah seized the fortress of Alamut. Moreover, the succession to the sultanate was complicated by the death of two of Malik-Shah's eldest sons: Dawud (died 1082) and Ahmad (died 1088), whom both were sons of the Kara-Khanid Princess Terken Khatun. She also had a son named Mahmud (born 1087) whom she wanted to succeed his father, while Nizam and most of the Seljuk army was in favor of Barkiyaruq,^[19] the oldest of all Malik-Shah's living sons and born to a Seljuk princess. Terken Khatun then allied with Taj al-Mulk Abu'l Ghana'im to try to remove Nizam from his post. Taj even accused Nizam of corruption before the sultan. Malik Shah I, however, did not dare to dismiss Nizam.^[20] Nizam later besieged Alamut, but was forced to withdraw.

In 1092, Nizam, just before his death, knowing that his enemies were planning plots against him, made a famous speech at the court:

Tell the Sultan, If you have not already realized that I am your co-equal in the work of ruling, then know that you have only attained to this power through my statesmanship and judgement. Does he not remember when his father was killed, and I assumed responsibility for the conduct of affairs and crushed the rebels who reared their heads, from his own family and from elsewhere. Tell him that the stability of that regal cap is bound up with this vizierial inkstand, and that the harmony of these two interests is the means of securing all objects soughts after and the ultimate cause of all objects gained. If ever I close up this inkstand, that royal power will topple.^[19]