SOFAZ funds equal half of Azerbaijan's GDP
Baku, April 9 (AZERTAC). The volume of funds held in the state oil fund SOFAZ - an entity that accumulates and manages Azerbaijan's oil and gas revenues - is currently equal to half of the country's gross domestic product, SOFAZ head Shahmar Movsumov told a meeting of the World Economic Forum (Davos Forum) in Baku on Monday.
According to Movsumov, the funds accumulated in the state oil fund are mainly invested outside the country and mostly directed to infrastructure projects.
Movsumov said that Azerbaijan achieved great success in the economy in a short period of time, citing improved road infrastructure; the country has turned from a power importer into a power exporter, built roads, schools, modernized and expanded the sanitation and water supply systems.
Among the major projects which will be financed this year through SOFAZ, Movsumov referred to the project on the development of broadband Internet in Azerbaijan, which will create opportunities for the private sector.
SOFAZ, a sovereign wealth fund, was established in December 1999 by a presidential decree. Its primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations.
The assets of SOFAZ as of January 1, 2013 had grown by 14.5 percent compared to early 2012 and stood at $34.129 billion.
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