2016 Annual Report: State Oil Fund of the Republic of Azerbaijan

Abstract

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) was established in accordance with the Decree of national leader Heydar Aliyev No. 240 on December 29, 1999. SOFAZ is a mechanism whereby energy-related earnings are accumulated and efficiently managed for future generations. SOFAZ is structured as an extra-budgetary fund and functions as the legal entity separate from the government or central bank. Statute of SOFAZ was approved in 2000. The cornerstone of SOFAZ’s philosophy is to ensure intergenerational equality with respect to the benefit from the country’s oil wealth.