BAKU, Azerbaijan, August 25. Gold is the largest component of the investment portfolio of the State Oil Fund of Azerbaijan (SOFAZ), accounting for 36% of its assets.
This was stated in a new report by the international rating agency Fitch Ratings.
According to the report, SOFAZ’s assets as of the end of the first quarter of 2026 totaled $73.5 billion, which corresponds to 93.2% of Azerbaijan’s projected GDP for 2026.
Fitch notes that gold assets directly contributed to a $19.4 billion increase in SOFAZ’s assets between 2023 and the first quarter of 2026. Of this growth, 26% was attributable to the volume effect.
"Azerbaijan’s ‘BBB-’ rating, according to Fitch, is also being upgraded by one notch due to the significant volume of SOFAZ’s assets. These assets provide the country with a high level of foreign currency liquidity and the status of a net external creditor.
Rising gold prices have a positive impact on the value of SOFAZ’s assets; however, this effect may be offset to varying degrees by changes in the volume of gold reserves. Specifically, in the period from January through April 2026, SOFAZ carried out accumulated sales of a portion of its gold reserves as part of a rebalancing of its investment portfolio.
“The rise in gold prices supports Azerbaijan’s rating, but in the near term, it is unlikely to be a factor in its further upgrade,” the agency reports.
Overall, Fitch notes a significant increase in the gold reserves of central banks and sovereign wealth funds in the Caucasus and Central Asia amid rising gold prices.
