Azerbaijan
Goals and objectives
The State Oil Fund of Azerbaijan (SOFAZ) was set up in December 1999 by the Presidential Decree as an extra-budgetary entity which accumulates and manages oil and gas revenues of the country.
The Fund’s primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations. Governance arrangement and Investment policy SOFAZ has a three-tier governance structure, with the President of the country being a supreme governing and reporting authority for the Fund.
SOFAZ's activities are overseen by a Supervisory Board headed by the Prime Minister and comprises of members of the Parliament, Government and a representative of academia. The management of the SOFAZ is vested with the Executive Director, who is appointed by the head of state. The Fund’s investments should comply with the Investment Guidelines and Investment Policy approved by the head of state. Funding and withdrawal SOFAZ’s capital is generated primarily from sales of oil and gas and asset management. The Fund’s annual budget of revenues and expenditures is a part of consolidated government budget.
The main parts of SOFAZ’s expenditures are transfers to the state budget and financing the strategically important socio-economic projects. Reporting and auditing The governance of the SOFAZ is characterized by a high degree of transparency. SOFAZ’s finances audited by a reputable international audit firm and available in public domain. In addition to routine reporting procedures the Fund holds regular press conferences to keep stakeholders updated on its activities.
SOFAZ is an active participant of Extractive Industries Transparency Initiative (EITI) since its inception and won the 2007 UN Public Service Award for Improving Transparency, Accountability and Responsiveness in Public Service for EITI. More information about the Fund’s activities can be obtained from the SOFAZ’s website: http://www.oilfund.az/en_US/
