Azerbaijan’s Oil Fund expects to earn $6 billion a year from asset management in 15 years

Baku, Fineko/ The State Oil Fund of Azerbaijan (SOFAZ) expects that in 15 years its annual earnings from assets management will be at the level of its current transfers to the State Budget.

Fund’s executive director Shahmar Movsumov says that with a minimum asset placement profitability of 5% they can reach the level of assets management income of $6 billion a year in 15 years.

"Total proceeds from SOFAZ assets management over the last few years already exceeded $1 billion," Movsumov said.

His forecast was made on expectations that the current practice of parity accumulation and expenditures of Fund’s annual earnings will keep.

"SOFAZ overall revenues from the very beginning of its foundation in December 1999 totaled $40 billion, including spent $20 billion and another $20 billion saved in the Fund. According to forecasts, over the next 15 years Azerbaijan’s oil revenues will reach $200 billion. If to take into account practice for the past few years, then at least half of these proceeds will be directed for assets of the Fund," Movsumov said.

According to SOFAZ forecasts, in the next five years its assets, in case the current oil price at world markets and the level of Fund’s money spending keep, can reach $50 billion.

"Under favorable conditions, over the next 15 years the SOFAZ assets can reach $120 billion," Movsumov said.

It should be noted that the Azerbaijani government has been already considering prospects of changing the practice of Fund’s money spending (



03.11.2010 14:23


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