17:05 - 25.08.2026

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August 25, Fineko/abc.az. Gold reserves of the State Oil Fund of Azerbaijan (SOFAZ) remain a pivotal factor in bolstering the country's sovereign external buffers. According to a report by Fitch Ratings, SOFAZ's investment portfolio reached $73.5 billion by the end of Q1, accounting for approximately 93.2% of Azerbaijan's projected annual GDP. Gold forms the largest single component of the portfolio, representing 36% of total assets.

Key highlights from the Fitch report:

• Asset Growth: Rising precious metal prices drove a direct $19.4 billion increase in SOFAZ's total assets from 2023 through Q1. Expanding the volume of gold reserves accounted for 26% of this gain.

• Top Global Institutional Buyer: Between 2024 and June 2026, SOFAZ acquired 76 tons of gold, ranking among the world's largest institutional buyers alongside the central banks of Poland, China, and India. A portion of the reserves was cumulatively sold in January–April 2026 for portfolio rebalancing.

• Strategic Advantages & Domestic Storage: Unlike regional peers (Uzbekistan and Kyrgyzstan), gold plays a minimal role in Azerbaijan's commodity exports (just 0.2% in 2025). Storing physical gold domestically reduces political and legal risks while maintaining high liquidity.

• Sovereign Rating: Azerbaijan's sovereign rating stands at "BBB-" with a Stable outlook. Fitch described the country's net external creditor position and FX liquidity as "exceptionally strong."