A Financial Review of the State Oil Fund of Azerbaijan under Shifting Global Dynamics

Gubad Ibadoghlu

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: The financial sustainability of the State Oil Fund of Azerbaijan (SOFAZ) is entering a critical phase, shaped by both domestic and international economic shifts. With Donald Trump’s return to power in the United States, significant changes in domestic and foreign policy are reshaping global markets, particularly in the energy and securities sectors. These transformations have direct implications for SOFAZ’s revenue streams, expenditure framework, and long-term financial stability. This article provides a comprehensive analysis of SOFAZ’s fiscal landscape, evaluating key revenue sources, spending patterns, and sustainability risks. It examines the impact of declining oil production, shifting commodity prices, and geopolitical uncertainties on SOFAZ’s financial trajectory. Additionally, the study assesses how increasing budgetary transfers, market volatility, and investment strategies influence the Fund’s ability to navigate economic uncertainties. By integrating these factors, this research offers a forward-looking perspective on SOFAZ’s future financial management and strategic adjustments, contributing to broader discussions on oil wealth governance and economic stability in Azerbaijan.

Keywords: Azerbaijan; SOFAZ; oil price; revenue; expenditure; financial management; geopolitical uncertainties; budgetary transfers; market volatility; investment strategies; wealth governance; economic stability (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-ene and nep-tra
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/310919/1/I ... AZ-in-transition.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:310919

Access Statistics for this paper

More papers in EconStor Preprints from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().