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Key highlights for the first quarter of 2026:
- SOFAZ’s total assets stood at USD 73.5 billion (125 billion manats).
- The Fund recorded total revenues of 3.2 billion manats, while expenditures amounted to 3.2 billion manats.
- Oil and gas revenues from sales of hydrocarbons amounted to 1.8 billion manats.
- SOFAZ transferred 3.2 billion manats to the state budget.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) reports that its assets amounted to USD 73 541.5 million (125 020.5 million manats) at the beginning of 2026 and stood at USD 73 515.9 million (124 977.0 million manats) as of March 31, 2026.
During the period from January to March 2026, SOFAZ’s total revenues amounted to 3 180.0 million manats. The Fund's oil and gas revenues amounted to 1 803.1 million manats. Total revenues generated from asset management activities reached 1 376.8 million manats, including extra-budgetary revenues of 2 117.9 million manats arising from changes in gold prices and foreign exchange movements. At the same time, a decline of 741.1 million manats in returns on investments was recorded, reflecting changes in the market value of the investment portfolio. Budget expenditures for the reporting period totalled 3 223.5 million manats.
Oil and gas revenues:
- SOFAZ's revenue from oil and gas agreements totaled 1 803.1 million manats, consisting of:
1 802.7 million manats from the sale of oil and gas,
0.4 million manats from bonus payments and transit revenues,
It should be noted that during the reporting period, SOFAZ received 1400.5 million manats from the Azeri-Chirag-Gunashli field and 359.6 million manats from the Shah Deniz field (gas and condensate).
Budget expenditures:
- Transfer to the State budget. Within the framework of the 2026 SOFAZ budget implementation, a total of 3210.0million manats were transferred into the state budget during the reporting period.
- Project expenditures.In January-March 2026, 7.1 million manats were allocated to the following ongoing projects:
1.2 million manats were directed to financing the "2019-2023 State Program on increasing the international competitiveness of the higher education system of Azerbaijan,"
5.9 million manats were allocated for the "State Program for the Education of Youth at Prestigious Universities of Foreign Countries for 2022-2028."
- Operational expenditures. The operational expenditures of SOFAZ amounted to 6.4 million manats for the reporting period.
Current state of financial markets and its impact on the portfolio
Global financial markets experienced a challenging environment during the first quarter of 2026, amid heightened geopolitical tensions and ongoing uncertainty. Equity and bond markets were under pressure during the quarter, but gold investments made a significant positive contribution. SOFAZ’s private equity, real estate and infrastructure investments also delivered positive returns during the quarter.
Although yields in advanced government bond markets declined during the first two months of the year, they rose in March, driven by rising oil and gas prices and inflation expectations amid tensions in the Middle East, which negatively affected bond prices. While European markets were more affected by this dynamic, the portfolio of US dollar-denominated debt securities remained relatively resilient.
Global equity markets performed well during the first two months of the quarter but subsequently declined due to geopolitical tensions.
Gold continued to perform well in 2026, reflecting the supportive factors that drove its price increases in previous years. Although prices declined in March, gold ended the quarter with overall positive results, generating extra-budgetary revenues for SOFAZ's gold sub-portfolio.
