Azerbaijan’s sovereign wealth fund invests $900 million in Gulf countries

The State Oil Fund of Azerbaijan (SOFAZ) has invested approximately $900 million in Gulf countries in recent years, the fund confirmed in a response to Report.

The investments have primarily targeted sovereign bonds, corporate and government-guaranteed financial instruments, infrastructure projects, as well as education and the real sector of the economy.

In Kuwait, Qatar, and Saudi Arabia, the investments were made through sovereign debt instruments, with around $300 million allocated to Saudi government bonds.

SOFAZ highlighted that a recent visit by a delegation led by Executive Director Israfil Mammadov to Saudi Arabia was important for exploring new markets, identifying mutual interests, and establishing institutional dialogue for future cooperation.

“The fund believes that such contacts help expand its international investment footprint and develop projects of strategic significance over the long term,” SOFAZ said.

According to SOFAZ’s investment policy, all potential projects undergo a multi-stage evaluation, including technical, financial, legal, risk, and compliance assessments. “This approach reflects SOFAZ’s long-term mandate and aims to maintain a balance between risk and return while adhering to prudent investment principles,” the fund added.

As of October 1, 2025, SOFAZ’s assets stood at $70.161 billion, up 16.9% compared to January 1, 2025. Over the year, the value of the fund’s investment portfolio grew by 14.7%, or $8.969 billion, reaching $70.16 billion.