The State Oil Fund of the Republic of Azerbaijan (SOFAZ) reports that as of September 30, 2025, SOFAZ's assets increased by 16.9% totaling 70 161.7 million US dollars, compared to 60 031.4 million US dollars at the beginning of the year 2025.
Key highlights for the first nine months of 2025:
- Total assets: USD 70.2 billion (+16.9 %)
- Total revenues: 13 073.5 million manats
- Total expenditure: 10 917.8 million manats
- Oil & gas revenues: 7 837.7 million manats
- Investment return:5 235.7 million manats
- Extra-budgetary revenues:15 066.1 million manats
- Transfers to State Budget: 10 860.8 million manats
Oil & gas revenues
SOFAZ's revenue from oil and gas agreements totaled 7 837.7 million manats, consisting of:
- 7 068.8 million manats from the sale of oil and gas,
- 765.3 million manats from bonus payments and transit revenues,
- 3.6 million manats from acreage fee.
It should be noted that during the reporting period, SOFAZ received 6 183.9 million manats from the Azeri-Chirag-Gunashli (ACG) field and 697.0 million manats (from gas and condensate) from the Shah Deniz field.
Investment return and extra-budgetary revenues
The return from managing SOFAZ's assets amounted to 5 235.7 million manats.
SOFAZ's extra-budgetary revenues totaled 15 066.1 million manats, attributed to revaluations in exchange rates.
Transfer to the State budget and expenditure
Within the framework of the 2025 SOFAZ budget implementation, a total of 10 860.8 million manats were transferred into the state budget during the reporting period.
In January-September 2025, 34.3 million manats were allocated to the following ongoing projects:
- 8.2 million manats were directed to financing the "2019-2023 State Program on increasing the international competitiveness of the higher education system of Azerbaijan,"
- 26.1 million manats were allocated for the "State Program for the Education of Youth at Prestigious Universities of Foreign Countries for 2022-2028."
The operational expenditure of SOFAZ amounted to 22.9 million manats for the reporting period.
During the January–September 2025 period, SOFAZ sold a total of 4 350.3 million US dollars through auctions conducted in coordination with the Central Bank of the Republic of Azerbaijan.
Current state of financial markets and its impact on the portfolio
SOFAZ’ s asset growth for the first nine months of 2025 was primarily driven by investment revenue as well as extra-budgetary revenues.
In financial markets, the volatility of government bond yields was lower in Q3 when compared to previous quarters, likely reflecting a relatively calmer macro environment. In terms of direction, benchmark 10y yields of Eurozone and the UK rose during the period, while US 10y yield decreased. SOFAZ’s fixed income returns improved, also supported by high interest earnings.
Global equity markets showed a strong performance during the third quarter, continuing their upward run from the previous quarter. Gains were led by US markets, with major indices posting solid returns. This led to a large positive contribution to SOFAZ’s public equity returns during the quarter.
Gold posted further gains, continuously breaking its historic high levels. Overall global uncertainties, large central bank purchases and demand from other sources fueled the rally, significantly improving the performance of SOFAZ’s gold sub-portfolio, which resulted in additional extra-budgetary revenue.
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