SOFAZ assets equal half of GDP of Azerbaijan
Azerbaijan, Baku, April 8 / Trend, corr S. Aliyev /
Currently, the assets of the State Oil Fund of Azerbaijan (SOFAR) are equal to half of the country's GDP, the head of the State Oil Fund Shahmar Movsumov said during the World Economic Forum (Davos Forum) "The strategic dialogue on the future of the South Caucasus and Central Asia" held in Baku on Monday.
According to him, assets of the State Oil Fund are invested outside the country and are mostly aimed at infrastructure projects.
"The economic Strategy of the country's government is focused on the use of the fund's assets for the realization of infrastructure projects", Movsumov said.
According to him, Azerbaijan has made great strides in the economy during a limited period of time: road infrastructure has been improved, the country that was an electric power importer before has become an exporter, new roads and schools are being constructed, sewage and water supply systems are being renewed and expanded.
Among the major projects, on which SOFAZ assets will be allocated this year Movsumov named the project of the development of broadband internet in Azerbaijan, which will create opportunities for the private sector.
SOFAZ was established in 1999 with assets of $271 million. As of Jan. 1, 2013, SOFAZ's assets hit $34.1 billion.
The main purposes of the fund are the accumulation of funds and the placement of these fund's assets abroad to minimize negative trends in the economy by preventing 'Dutch disease'. This ensures savings for future generations and the continuity of the country's current socio-economic standard.