BAKU, July 21 — The State Oil Fund of Azerbaijan (SOFAZ) significantly expanded its investments in gold over the past year, increasing its holdings by 83% compared to the previous year, according to the fund’s annual financial report.
As of January 1, 2025, SOFAZ’s investments in gold bullion totaled 21.003 billion manats, up from 11.474 billion manats the year before. The share of gold in the fund’s total assets rose from 12% to 20.5% over the same period.
The shift reflects a strategic decision made by the fund in October 2024 to deepen its exposure to precious metals. The move aims to hedge against rising geopolitical risks and volatile market conditions while increasing portfolio diversification.
Since the beginning of the 2025 fiscal year and up to the date of the financial report’s approval, SOFAZ acquired an additional 989,000 troy ounces of gold.
Analysts view the fund’s pivot toward gold as part of a broader trend among sovereign wealth funds to de-risk and balance their portfolios amid global uncertainty, particularly in light of shifting commodity markets, geopolitical tensions, and inflationary pressures.
Established in 1999, SOFAZ manages revenues generated from Azerbaijan’s oil and gas exports with the stated goal of preserving wealth for future generations and supporting macroeconomic stability.
