BAKU, Azerbaijan, April 15. Azerbaijan plans to
gradually reduce transfers from the State Oil Fund (SOFAZ) to the
state budget in the coming years as part of efforts to strengthen
fiscal sustainability, Trend reports via the Ministry of Finance.
The total assets of the SOFAZ increased by 22.5% over the course
of 2025 compared to the beginning of the year, reaching $73.5
billion, while the return on assets stood at 6.2%.
Despite favorable ratios of assets to gross domestic product
(GDP) and debt indicators, a significant portion of budget revenues
continues to be formed through transfers from the fund, accounting
for 33.2% in 2026.
“Based on benchmark analysis, in oil-rich countries where
sustainable transfers from sovereign funds are directed to the
budget, such as Kazakhstan with 15% and Norway with 25%, this
indicator remains at a lower level. In this regard, it is planned
to gradually reduce transfers in the coming years and align annual
transfer volumes with the level of the fund’s investment income, in
line with best international practices,” the statement said.
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