SOFAZ reports investment returns and extra-budgetary revenues
Baku, October 23, AZERTAC
As of September 30, 2025, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) reported that returns from asset management amounted to 5,235.7 million manats. SOFAZ’s extra-budgetary revenues totaled 15,066.1 million manats, mainly due to exchange rate revaluations.
Transfers to the state budget and expenditures
Within the framework of the 2025 budget, SOFAZ transferred 10,860.8 million manats to the state budget during the reporting period.
From January to September 2025, 34.3 million manats were allocated to ongoing projects: 8.2 million manats to the “2019–2023 State Program on Increasing the International Competitiveness of Azerbaijan’s Higher Education System” and 26.1 million manats to the “State Program for the Education of Youth at Prestigious Foreign Universities for 2022–2028.” Operational expenditures of SOFAZ amounted to 22.9 million manats.
During the period, SOFAZ sold a total of 4,350.3 million US dollars through auctions conducted in coordination with the Central Bank of Azerbaijan.
Financial markets and portfolio performance
SOFAZ’s asset growth in the first nine months of 2025 was primarily driven by investment returns and extra-budgetary revenues.
In Q3, government bond yield volatility was lower compared to previous quarters, reflecting a calmer macro environment. Eurozone and UK 10-year benchmark yields rose, while the US 10-year yield declined, supporting improved fixed-income returns for SOFAZ.
Global equity markets continued a strong performance, led by US indices, contributing positively to SOFAZ’s public equity portfolio. Gold prices also rose, breaking historic highs due to global uncertainties, central bank purchases, and strong demand, boosting the performance of SOFAZ’s gold sub-portfolio and generating additional extra-budgetary revenues.
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