SOFAZ develops new investment policy
Azerbaijan, Baku, Nov. 2 / Trend , E.Ismayilov /
The State Oil Fund of Azerbaijan Republic (SOFAZ) is preparing a new investment policy for 2012 that will reflect changes to the rules of storage, placement and management of the Fund's foreign currency capital, SOFAZ Head Shahmar Movsumov told reporters today.
He said the investment policy is prepared annually and following completion it will, together with the Fund's budget, be presented to the Supervisory Board and Azerbaijani president.
The changes to the rules of storage, placement and management of SOFAZ have been made for the first time in 10 years and this shows that the Fund follows a conservative policy and in particular, an opportunity to invest in stocks, real estate and gold. The list of countries, in which the assets can be stored was expanded as Turkey and Russia were added.
In addition, the changes in currency composition are evidence to the Fund's plans to expand its activities.
SOFAZ was established in 1999 when its assets amounted to $271 million. As of Jan. 1, 2011 SOFAZ assets amounted to 22.8 billion and the Fund's current assets have already hit $32 billion.
Based on SOFAZ's regulations, the funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
Between 2001- 2009 special attention was made on the development of the oil and infrastructure sectors, as well as the non-oil sector of the country. At the moment, a number of important projects in irrigation and transportation are financed at from the funds.