The assets of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) exceeded USD 45 billion at the end of 2021. Meanwhile, the revenue generated from investment activities since the fund’s inception amounted to USD 10.2 billion (of which USD 8.9 billion has occurred within last ten years).

Budget revenues of SOFAZ for the period of January-December, 2021 reached AZN 15 985.6 million, while budget expenditures constituted AZN 11 382.7 million.

Revenue of AZN 12 698.2 million was received from the implementation of oil and gas agreements, including AZN 11 894.6 million from the sale of profit oil and gas, AZN 776.9 million as bonus payments, AZN 5.3 million as acreage fee and AZN 21.4 million as transit payments.

The revenues from managing SOFAZ’s assets for January-December 2021 amounted to AZN 3 287.4 million, which accounted for 20.56 % of total revenues.

SOFAZ’s extra-budgetary expenditures related to the foreign exchange movements amounted to AZN 2 119.3 million.

As per 2021 budget of the Fund, AZN 11 350.0 million were transferred to the state budget. During this period, AZN 10.2 million were allocated to the “State Program on Raising Competitiveness of Higher Education in Azerbaijan in 2019-2023”. SOFAZ’s administrative and operational expenses for the reporting period totaled AZN 22.5 million.

As of 01 January, 2022, the value of SOFAZ`s assets under management amounted to USD 45 025.1 million, increasing by 3.35 % compared to the start of the year (USD 43 564.3 million).

The increase was largely due to SOFAZ’s budget revenue and managing assets. During the current period each asset class positively contributed to the overall investment portfolio return, with lion’s share of the returns coming from equity investments.