BAKU, Azerbaijan, August 25. Gold is the
largest component of the investment portfolio of the State Oil Fund
of Azerbaijan (SOFAZ), accounting for 36% of its assets.
This was stated in a new report by the international rating
agency Fitch Ratings.
According to the report, SOFAZ’s assets as of the end of the
first quarter of 2026 totaled $73.5 billion, which corresponds to
93.2% of Azerbaijan’s projected GDP for 2026.
Fitch notes that gold assets directly contributed to a $19.4
billion increase in SOFAZ’s assets between 2023 and the first
quarter of 2026. Of this growth, 26% was attributable to the volume
effect.
"Azerbaijan’s ‘BBB-’ rating, according to Fitch, is also being
upgraded by one notch due to the significant volume of SOFAZ’s
assets. These assets provide the country with a high level of
foreign currency liquidity and the status of a net external
creditor.
Rising gold prices have a positive impact on the value of
SOFAZ’s assets; however, this effect may be offset to varying
degrees by changes in the volume of gold reserves. Specifically, in
the period from January through April 2026, SOFAZ carried out
accumulated sales of a portion of its gold reserves as part of a
rebalancing of its investment portfolio.
“The rise in gold prices supports Azerbaijan’s rating, but in
the near term, it is unlikely to be a factor in its further
upgrade,” the agency reports.
Overall, Fitch notes a significant increase in the gold reserves
of central banks and sovereign wealth funds in the Caucasus and
Central Asia amid rising gold prices.
