SOFAZ assets surpass $58 billion in first half of 2024

The State Oil Fund of Azerbaijan (SOFAZ) reported total assets exceeding $58 billion at the end of the first half of 2024, reflecting a 3.4% increase since the beginning of the year.

From January to June 2024, SOFAZ's budget revenues were AZN 9.25 billion, with expenditures totaling AZN 6.41 billion, Caliber.Az reports via the Fund.

Key revenue figures include:

Oil and gas agreements: AZN 6.44 billion

Profitable oil and gas sales: AZN 5.66 billion

Bonus payments: AZN 775.9 million

Transit revenues: AZN 0.3 thousand

Post-acre payments: AZN 3.6 million

Investment income: AZN 2.82 billion

SOFAZ transferred AZN 6.39 billion to the state budget and allocated AZN 5.2 million for the "State Programme on Increasing International Competitiveness of Azerbaijan's Higher Education System for 2019-2023".

Additionally, AZN 7.1 million was allocated for the "State Programme for 2022-2026 on training young people in prestigious higher education institutions of foreign countries", and management expenses amounted to AZN 11.6 million.

Extra-budgetary revenues, due to exchange rate changes, totaled AZN 441.5 million.

SOFAZ noted that equity investments were the main source of income from asset management. Despite high interest rates in developed economies, low unemployment positively impacted consumption and GDP growth. Advances in artificial intelligence technology and optimistic expectations also supported IT stocks, resulting in high returns in stock markets during the first half of the year. Reduced uncertainty regarding interest rates further created an optimistic environment in capital markets.