The State Oil Fund of the Republic of Azerbaijan (SOFAZ) reports that as of June 30, 2024, SOFAZ's assets increased by 3.4% totaling 58 000.6 million US dollars, compared to 56,069.7 million US dollars at the beginning of the year.

In the first half of 2024, budgetary revenues for the period totaled 9 254.9 million manats, while budgetary expenses amounted to 6 414.4 million manats.

SOFAZ's revenue streams originating from oil and gas agreements stood at 6 436.5 million manats during the same period. This included 5 657.0 million manats from sale of oil and gas, alongside bonus payments totaling 775.9 million manats, transit revenues of 0.3 thousand manats and acreage fee of 3.6 million manats.

Additionally, the investment return from managing SOFAZ's assets amounted to 2 818.4 million manats.

Within the framework of the 2024 SOFAZ budget implementation, a total of 6 390.5 million manats were transferred into the state budget during the reporting period. 5.2 million manats were directed to financing the "2019-2023 State Program on increasing the international competitiveness of the higher education system of Azerbaijan," while 7.1 million manats were allocated for the "State Program for the Education of Youth at Prestigious Universities of Foreign Countries for 2022-2026." Additionally, operational expenses of SOFAZ amounted to 11.6 million manats for the January - June 2024 period.

SOFAZ's extra-budgetary revenues totaled 441.5 million manats, attributed to revaluations in exchange rates.

Equity investments have been the primary driver of investment returns. Despite high interest rates in developed economies, resilient labor market has positively influenced consumption indicators, including GDP growth. Advances in artificial intelligence technology and optimistic expectations in this sector have significantly bolstered information technology stocks. As a result, valuations remained high in the equity markets during the first half of the year.

The gradual convergence of market participants' and central banks' expectations regarding policy rates has reduced uncertainty about interest rates in financial markets compared to previous quarters. Based on both actual indicators and forecasts, the anticipation of mild slowdown in growth and inflation is expected to prompt central bank easing and extend the economic cycle, allowing the central banks to manage potential growth deceleration.