BAKU, Azerbaijan, October 20.
The assets of the State Oil Fund of Azerbaijan (SOFAZ) amounted to
$74 billion or 125.8 billion manat as of September 30, 2026.


This was reflected in SOFAZ's report on revenues and
expenditures for January-September 2026.


According to the report, the fund's assets increased by $462
million (786 million manat) compared with the beginning of 2026. At
the start of the year, SOFAZ's assets stood at $73.5 billion (125
billion manat).


During the reporting period, the fund's total revenues amounted
to 12.34 billion manat ($7.26 billion). Of this amount, 8.74
billion manat ($5.14 billion) came from revenues related to oil and
gas projects, while 3.6 billion manat ($2.1 billion) was generated
from asset management.


The bulk of revenues from oil and gas projects came from the
sale of profit oil and gas. Receipts from this source amounted to
7.3 billion manat ($4.3 billion). Bonus payments and transit
revenues totaled 900,000 manat ($529,412), while acreage fees
amounted to 4.9 million manat ($2.88 million). In addition, 1.39
billion manat ($818.2 million) was received from the sale of the
state's stake in the Southern Gas Corridor CJSC.


According to SOFAZ, during the reporting period, 6.57 billion
manat ($3.86 billion) was received from the Azeri-Chirag-Gunashli
(ACG) field, while 565.1 million manat ($332.4 million) came from
the sale of gas and condensate from the Shah Deniz field.


From January through September 2026, the fund's budget
expenditures amounted to 9.68 billion manat ($5.69 billion). Of
this amount, 9.6 billion manat ($5.66 billion) was transferred to
the state budget.


At the same time, the fund allocated 27.7 million manat ($16.3
million) to finance ongoing state programs and projects. Of this
amount, 3.6 million manat ($2.1 million) was allocated to the State
program to increase the international competitiveness of
Azerbaijan's higher education system for 2019-2023; 21.9 million
manat ($12.9 million) to the State program on education of
Azerbaijani youth at prestigious higher education institutions
abroad for 2022-2028; and 2.2 million manat ($1.3 million) to
international dual-degree programs.


During the reporting period, SOFAZ's management expenses
amounted to 25.5 million manat ($15 million). In addition, changes
in gold prices and foreign exchange rates resulted in an off-budget
expense of 1.87 billion manat ($1.1 billion).







Situation in global financial markets


The fund’s report also addressed trends observed in global
financial markets during the third quarter of 2026.


According to the report, geopolitical tensions, inflationary
pressures, and expectations regarding monetary policy have impacted
major asset classes, with high volatility persisting in the
markets.


Positive returns were recorded in global equity markets during
the quarter. Resilient economic growth, strong corporate financial
results, and investments in artificial intelligence and related
infrastructure supported the rise in equity markets.


At the same time, rising energy prices, persistent inflation,
and expectations that interest rates would remain high drove up
yields on government bonds in major developed economies. This, in
turn, had a negative impact on the market value of these bonds.
Concerns regarding sovereign debt and large volumes of bond
issuance also exerted additional pressure on the yields of
long-term bonds.


Significant price volatility was also observed in the gold
market. In August, rising geopolitical uncertainty and investment
demand supported an increase in the price of gold. In September,
however, the price of gold declined against the backdrop of rising
yields on U.S. government bonds and a strengthening dollar.


Despite these factors, global stock markets ended the third
quarter with gains. Strong corporate fundamentals were a key factor
supporting market resilience amidst a challenging macroeconomic
environment.