BAKU, Azerbaijan, July 13
By Nargiz Ismayilova - Trend:
Investments in Azerbaijan’s fixed capital decreased in real terms by 2.3 percent last year compared to 2018, and amounted to 17.1 billion manat ($10.06 billion), Trend reports referring to the consolidated financial statement on operational profit of State Oil Fund of Azerbaijan (SOFAZ) for 2019.
According to the statement, investments from domestic sources accounted for 69.8 percent, and 30.2 percent – foreign ones. Some 65.4 percent of the investments were directly spent on construction and installation work.
The decline in the investments was related to the oil sector, while in the non-oil sector, a nominal growth of 4 percent was recorded.
“In 2019, compared to the previous years, a significant increase in the fund’s income was recorded in the context of stable prices for crude oil, as well as a significant increase in revenue from managing SOFAZ assets for the year. Last year, the average price of a barrel of crude oil on SOFAZ income made up $64, while SOFAZ’s budget revenues amounted to nearly $11.2 billion, and SOFAZ’s reserves - $43.3 billion," the statement said.
SOFAZ was established in 1999 with assets of $271 million.
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, resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
($1=1.7 AZN on July 13)
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