BAKU, Azerbaijan, October 23. The State Oil Fund of Azerbaijan (SOFAZ) is undergoing a "quiet revolution" in its asset management, leading Azerbaijani economist, Ingilab Ahmadov wrote on his social media account, Trend reports.
Ahmadov highlighted that over the past five years, SOFAZ has reallocated its investment portfolio toward more flexible and higher-yielding assets.
“In 2020, the fund’s portfolio was heavily weighted toward fixed-income instruments at 63.8 percent. By the first nine months of 2025, that allocation had contracted by 29 percentage points to 34.7 percent,” he explained.
Meanwhile, the allocation to gold increased by 18.6 percentage points to 32.8 percent, and equities expanded by 9.9 percentage points to 25.8 percent, approaching levels comparable to 2020.
“This portfolio optimization has been implemented amid declining oil and gas revenues, the fund’s core inflow. Through this asset diversification strategy, SOFAZ has been able to sustain robust growth in total assets despite the reduction in its primary revenue stream,” he said.
According to preliminary data for the first nine months of 2025, SOFAZ’s total assets surpassed $70 billion, setting a new historical record.
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