Key highlights for the year 2025:

• SOFAZ's assets reached USD 73.5 billion, representing a 22.5% increase compared to the beginning of the year (USD 60 billion).
• The Fund recorded total revenues of 37.6 billion manats, while expenditures stood at 14.6 billion manats.
• Oil and gas revenues from sales of hydrocarbons amounted to 9.5 billion manats.
• SOFAZ recorded an investment return of 6.2%, resulting in return of 6.9 billion manats (USD 4 billion).
• SOFAZ transferred 14.5 billion manats to the state budget.

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) reports that as of December 31, 2025, SOFAZ's assets increased by 22.5% totaling 73 541.5 million US dollars (125 020.5 million manats), compared to 60 031.4 million US dollars (102 053.3 million manats) at the beginning of the year 2025.

During the period from January to December 2025, SOFAZ’s total revenues amounted to 37 594.4 million manats. Budget revenues reached 17 160.4 million manats, while extra-budgetary revenues arising from changes in foreign exchange rates and gold prices amounted to 20 434.0 million manats. Budget expenditures for the reporting period totaled 14 627.2 million manats.

Budget revenues:

• Oil and gas revenues. SOFAZ's revenue from oil and gas agreements totaled 10 266.3 million manats, consisting of:

• 9 497.0 million manats from the sale of oil and gas,
• 765.7 million manats from bonus payments and transit revenues,
• 3.6 million manats from acreage fee.

It should be noted that during the reporting period, SOFAZ received 8 292.9 million manats from the Azeri-Chirag-Gunashli field and 958.8 million manats from the Shah Deniz field (gas and condensate).

• Investment return. SOFAZ recorded an investment return of 6.2%, resulting in return of 6 894.1 million manats.

Budget expenditures:

• Transfer to the State budget.Within the framework of the 2025 SOFAZ budget implementation, a total of 14 481.0 million manats were transferred into the state budget during the reporting period.
• Project expenditures. In January-December 2025, 105.5 million manats were allocated to the following ongoing projects:

• 18.6 million manats were directed to financing the "2019-2023 State Program on increasing the international competitiveness of the higher education system of Azerbaijan,"
• 86.9 million manats were allocated for the "State Program for the Education of Youth at Prestigious Universities of Foreign Countries for 2022-2028."

• Operational expenditures.The operational expenditures of SOFAZ amounted to 40.7 million manats for the reporting period.

Current state of financial markets and its impact on the portfolio

During 2025, trends in the financial markets had a positive impact on the assets of SOFAZ.

Due to the relatively weakening labor market and inflationary pressures expected from newly introduced tariffs not materializing in the United States, as well as the continuation of accommodative monetary policy in the Eurozone and mainly the weakening of the labor market in the United Kingdom, central banks reduced their policy interest rates. These developments, in turn, contributed positively towards fixed income sub-portfolio performance. At the same time, relatively elevated interest rates have remained the major source of SOFAZ’s fixed-income return.

SOFAZ’s equity investments also generated positive returns during the year. Overall resilience in companies’ earnings, advances in the technology sector, including artificial intelligence, as well as interest rate cuts by leading central banks supported market performance.

Over the past year, returns on real assets investments varied across sectors. Despite continued pressures in the office sector, strong demand for logistics, residential real estate, and infrastructure assets supported stable returns in these sectors. As a result, SOFAZ’s real assets sub-portfolio generated positive returns in 2025.

Amid central bank purchases, ongoing uncertainties, and geopolitical risks, gold prices rose significantly during the year, reaching record-high levels. As a result, substantial extra-budgetary revenues were generated from SOFAZ’s gold sub-portfolio.