The State Oil Fund of Azerbaijan (SOFAZ) has reported a major increase in its assets, reaching $70.16 billion as of October 1 – a 16.9% rise since the beginning of the year, according to official data cited by Report.
Between January and September, SOFAZ revenues totaled 13.07 billion manats, while expenditures stood at 10.92 billion manats. Of this, 7.84 billion manats came from oil and gas contracts, including 7.07 billion from profit oil and gas sales, 765 million from bonuses and transit fees, and 3.6 million from acreage payments.
The fund’s asset-management income reached 5.24 billion manats, driven by stronger returns and rising gold prices. During the third quarter, SOFAZ purchased 3.7 tons of gold, boosting its reserves to 184.8 tons, now accounting for 32.8% of its investment portfolio – up four percentage points since July.
Diversified Portfolio, Growing Global Reach
Currently, 67.8% of SOFAZ’s investments (worth $47.6 billion) are held in U.S. dollars, 20% in euros, and 4.9% in British pounds. Holdings in Chinese yuan have decreased to 2.3%.
Regionally, investments in the Middle East have risen sharply to 1.4% of the portfolio, up from just 0.3% a year ago. Allocations to Europe increased to 30.1%, while exposure to Asia declined to 8.5% and to North America dropped from 33.1% to 24.8%.
The share of bonds and money-market instruments fell to 34.7% (down 15.7 points year-on-year), while gold and real estate holdings expanded.
Strategic Reserves Near $81.5 Billion
Azerbaijan’s combined strategic currency reserves – including SOFAZ and the Central Bank – reached $81.47 billion as of October 1. Of this total, SOFAZ holds $70.16 billion (86%), while the Central Bank controls $11.31 billion (14%).
In the third quarter alone, national reserves increased by $3.8 billion, reflecting a 4.9% quarterly growth and a 10.8% year-on-year rise.
Lower Transfers, Strong Fiscal Position
For 2026, SOFAZ’s revenues are projected at 13 billion manats, down 9.8% from 2025, while expenditures are expected to fall 11.1% to 12.97 billion manats. The fund plans to transfer 12.83 billion manats to the state budget, alongside allocations for education and youth programs.
Despite reduced transfers, analysts say the fund’s strengthened reserves and diversified portfolio underscore Azerbaijan’s stable fiscal position and its resilience against oil-price volatility.
