BAKU, Azerbaijan, October 22. Investment revenues of the State Oil Fund of Azerbaijan (SOFAz) have approached $15 billion, becoming a source of long-term financial stability, SOFAZ Deputy CEO Bahruz Bahramov said at the scientific-practical conference on "Economic foundations of state sovereignty and economic independence" dedicated to the "Year of Constitution and Sovereignty" held at the Parliament's Committee on Economic Policy, Industry, and Entrepreneurship, Trend reports.
According to him, SOFAZ, which kicked off its journey with a modest $270 million at its inception, has since become a cornerstone of the nation's fiscal and macroeconomic stability, swelling its assets to a strategic reserve level that has soared past the impressive $70 billion mark.
The deputy CEO emphasized that the fund’s contribution to maintaining macroeconomic stability in 2015, fulfilling social obligations in 2016 despite declining oil revenues, and covering additional budget expenditures during the pandemic in 2020 is a clear example of its role.
"Over these years, the fund has evolved not only as a manager of financial reserves but also as an institution built on institutional memory, sustainable governance principles, and international trust. Today, SOFAZ’s assets exceed 90 percent of GDP and are 12 times larger than the public debt," he explained.
Bahramov noted that the transfers made to the state budget during the fund’s operation have been directed—through the state budget—toward the development of social infrastructure, implementation of strategic projects, strengthening of defense capabilities, and improving public welfare.
"These transfers accounted for 50–60 percent of state budget revenues in the early years of economic development and around 30–40 percent in recent years, playing a key role in ensuring fiscal and macroeconomic stability. In addition, the fund has financed many strategically important social, infrastructure, energy, and education projects ($12 billion).
The total assets managed by SOFAZ’s globally reputable investment partners are close to $40 trillion, including more than $5 trillion in investments in real estate, infrastructure, and private equity asset classes.
Last year, the fund’s CEO was elected vice-chairman of the International Forum of Sovereign Wealth Funds—the first and only platform uniting sovereign institutions worldwide, with total assets exceeding $8 trillion," he concluded.
Established in 1999, SOFAZ is an extrabudgetary fund that operates as a distinct legal entity, independent of the government or central bank. SOFAZ protects and judiciously administers energy-derived revenues for current and forthcoming generations. A fundamental principle of SOFAZ is transparency. During this era, the Fund has evolved institutionally and attained international recognition as an asset management organization.
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