BAKU, Azerbaijan, October 22. Investment
revenues of the State Oil Fund of Azerbaijan (SOFAz) have
approached $15 billion, turning into a supply of long-term monetary
stability, SOFAZ Deputy CEO Bahruz Bahramov stated on the
scientific-practical convention on “Economic foundations of state
sovereignty and financial independence” devoted to the “Year of
Constitution and Sovereignty” held on the Parliament’s Committee on
Economic Policy, Industry, and Entrepreneurship, Trend studies.
According to him, SOFAZ, which kicked off its journey with a
modest $270 million at its inception, has since change into a
cornerstone of the nation’s fiscal and macroeconomic stability,
swelling its belongings to a strategic reserve degree that has soared
previous the spectacular $70 billion mark.
The deputy CEO emphasised that the fund’s contribution to
sustaining macroeconomic stability in 2015, fulfilling social
obligations in 2016 regardless of declining oil revenues, and masking
extra funds expenditures throughout the pandemic in 2020 is a
clear instance of its position.
“Over these years, the fund has advanced not solely as a supervisor of
monetary reserves but in addition as an establishment constructed on
institutional reminiscence, sustainable governance rules, and
worldwide belief. Today, SOFAZ’s belongings exceed 90 p.c of GDP
and are 12 occasions bigger than the general public debt,” he defined.
Bahramov famous that the transfers made to the state funds
throughout the fund’s operation have been directed—via the state
funds—towards the event of social infrastructure,
implementation of strategic tasks, strengthening of protection
capabilities, and enhancing public welfare.
“These transfers accounted for 50–60 p.c of state funds
revenues within the early years of financial growth and round
30–40 p.c in recent times, enjoying a key position in guaranteeing
fiscal and macroeconomic stability. In addition, the fund has
financed many strategically essential social, infrastructure,
power, and schooling tasks ($12 billion).
The whole belongings managed by SOFAZ’s globally respected
funding companions are near $40 trillion, together with greater than
$5 trillion in investments in actual property, infrastructure, and
non-public fairness asset lessons.
Last 12 months, the fund’s CEO was elected vice-chairman of the
International Forum of Sovereign Wealth Funds—the primary and solely
platform uniting sovereign establishments worldwide, with whole
belongings exceeding $8 trillion,” he concluded.
Established in 1999, SOFAZ is an extrabudgetary fund that
operates as a definite authorized entity, unbiased of the federal government
or central financial institution. SOFAZ protects and judiciously administers
energy-derived revenues for present and forthcoming generations. A
basic precept of SOFAZ is transparency. During this period,
the Fund has advanced institutionally and attained worldwide
recognition as an asset administration group.
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