The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has generated $22.7 billion in income from its investment activities over the last five years.
According to calculations by the Operative Information Center-OMM, the Fund's investment returns during this period exceeded net oil and gas inflows by approximately three times. This indicator highlights the significantly strengthened role of investment activities in the growth of SOFAZ reserves.
In addition to investment returns, exchange rate fluctuations and gains from gold holdings played a crucial role in the increase of reserves. Amid high volatility in global financial markets, inflationary pressures, and sharp fluctuations in interest rates, these results confirm the effectiveness of the Fund's long-term, balanced, and risk-sensitive investment strategy.
As a result, SOFAZ assets increased by $29.9 billion, or 70%, over the past five years, rising from $43.6 billion to $73.5 billion. Of this growth, $22.7 billion was derived from investment activities (including exchange rate differences and gold prices), while $7.2 billion came from net oil and gas inflows. This dynamics clearly demonstrates that investment activity has become one of the primary sources of sustainable value creation for the Fund in Azerbaijan.
Established in 1999, SOFAZ is a sovereign wealth fund responsible for the management of Azerbaijan's oil and gas revenues. The Fund's primary objectives include maintaining macroeconomic stability, ensuring the preservation of wealth for future generations, and financing major socio-economic projects. Its diversified portfolio includes fixed-income instruments, equities, real estate, and gold, distributed across various geographic regions and currencies to mitigate global market risks.
