SOFAZ reveals asset growth forecast for 2019
Baku, Azerbaijan, Jan. 3
By Azad Hasanli - Trend:
The assets of the State Oil Fund of Azerbaijan (SOFAZ) are expected at $39,667.63 million in 2019, which is 1.82 percent more than the forecast for last year, Trend reports with reference to the conclusion on the SOFAZ draft budget for 2019 by the Azerbaijan Chamber of Accounts.
In the asset structure, 55 percent, or $21,817.2 million, is expected to account for investments with a stable income, 25 percent, or $9,916.91 million is expected to account for shares, 10 percent, or $3,966.76 million for real estate and the same amount for gold.
In 2019, SOFAZ revenues from asset management are projected at $848.5 million (1,442.5 million manats). Most of the revenues ($527.22 million) will account for investments with a stable income, $208.26 million for stocks and $113.05 million for real estate.
The total investment portfolio return for 2019 should be 2.14 percent.
SOFAZ was established in 1999 with assets of $271 million. As of the end of the third quarter of 2018, SOFAZ’s assets increased by 8.9 percent as compared to early 2018 ($35.806 billion) and amounted to $38.987 billion.
Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include accumulation of resources and placement of assets abroad in order to minimize the negative effect to the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
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