Azernews.Az

BAKU – Azerbaijan’s state oil fund Sofar received revenues totaling $56.5 billion in the past decade, and almost 54 percent of the amount was accumulated, its head has said.

"Whereas in 2001 Sofar’s funds were at the level of $491.5 million, they have grown 62 times in the past 10 years to reach $30.4 billion," Shahmar Movsumov said in an interview posted on the ruling Yeni (New) Azerbaijan Party (YAP) website.

According to projections, if Sofar’s expenses remain at the current level, its assets may exceed $50 billion over the next five years, depending on world crude prices.

Movsumov said Sofar is committed to a conservative investment strategy that complies with the current state of affairs in world financial markets.

"A large share of the funds has been invested in securities with a high rating and liquidity. This strategy was justified during the world financial crisis."

However, Movsumov said, considering the changes in financial markets and in an effort to make riskier but more profitable investments, for instance, in the stock of companies or real estate, Sofar is drafting proposals on diversifying its investment portfolio.

"We hope that the new, diversified investment strategy will be approved as early as this year," he said. "Investing assets in stock will be possible after these proposals are accepted [by the government]."