The State Oil Fund of the Republic of Azerbaijan (SOFAZ) stands today as one of the cornerstones of the country’s sustainable economic development. Established to accumulate revenues from oil and gas exports and channel them into long-term investments, the Fund has become a symbol of Azerbaijan’s commitment to financial discipline, foresight, and diversification. Its expanding international portfolio reflects a clear strategic intention: to transform hydrocarbon income into enduring economic influence and global financial stability.
SOFAZ has invested £50 million in London’s Gatwick Airport - one of the largest and busiest airports in Europe. According to the Fund’s official statement, this investment was carried out within the framework of its partnership with Global Infrastructure Partners (GIP), an investment company that is part of the U.S.-based BlackRock group. These investments, among the Fund’s most significant infrastructure ventures in the European market, once again demonstrate its long-term engagement in global infrastructure projects and its dedication to sustainable development.
As SOFAZ Executive Director Israfil Mammadov emphasized, Gatwick Airport is not only one of Europe’s primary aviation hubs but also “a reliable and promising asset reflecting the Fund’s global and long-term investment approach.” His statement captures the essence of SOFAZ’s vision: the pursuit of stability, profit, and credibility through strategic global participation.
Photo: SOFAZ
In turn, GIP Chairman and CEO Adebayo Ogunlesi, as cited by the SOFAZ statement, expressed the company’s satisfaction with the Fund’s continued involvement in such an important asset as Gatwick Airport. “This airport is a high-quality infrastructure project ensuring long-term value and sustainable development for both investors and society,” said Ogunlesi, highlighting the project’s enduring potential and social impact.
Gatwick Airport remains the second-busiest airport in the United Kingdom and, as of 2024, ranked among Europe’s top ten airports by passenger traffic. Each year, Gatwick handles more than 43 million passengers and approximately 260,000 aircraft movements - all with a single active runway. In September 2025, the British government approved a £2.2 billion plan for the construction of a second runway, which is expected to enhance safety, reduce waste, and bring tangible benefits to both passengers and the local community. As noted by British media, these benefits will depend on responsible management and long-term oversight.
The history of Gatwick’s ownership also illustrates the collaborative nature of modern infrastructure investment. In 2019, VINCI Airports acquired 50.01% of Gatwick’s shares from GIP, while the remaining stake continues to be jointly managed by GIP, SOFAZ, and other international institutional investors. For Azerbaijan, participation in such a project represents not only an economic opportunity but also a reputational milestone - positioning SOFAZ among global institutional players trusted to co-own Europe’s vital assets.
London’s Gatwick Airport is not SOFAZ’s only major investment presence in Europe. On July 18, 2025, in Rome, a deal was signed between SOFAZ and Enfinity Global with the participation of Italian government officials, diplomats, and the media. Under this agreement, SOFAZ acquired a 49% stake in a portfolio of solar power plants in Italy with a total capacity of 402 megawatts, owned by Enfinity Global. The portfolio includes 14 solar facilities located in the Lazio and Emilia-Romagna regions, encompassing both operational plants and those under construction. This step demonstrates SOFAZ’s strong commitment to renewable energy and sustainable growth across the European continent.
Earlier, in February 2025, it was announced that the Fund had joined an investment vehicle managed by Global Infrastructure Partners (GIP) - again under the BlackRock umbrella - by investing €34.5 million in Italo - Nuovo Trasporto Viaggiatori S.p.A., Italy’s leading high-speed railway operator. Founded in 2012, Italo became the first private operator of high-speed passenger trains in Italy and is now one of the sector’s most advanced companies. It serves routes across 54 cities, including the Milan-Rome corridor, with a fleet of 25 AGV 575 and 26 Italo Evo trains capable of speeds up to 360 km/h. SOFAZ’s participation in such a project underscores its interest in sustainable mobility and infrastructure with long-term profitability and social relevance.
Financially, the first half of 2025 proved to be highly successful for SOFAZ. The Fund’s assets increased, revenues exceeded expenditures, and funds were allocated to state programs and the national budget. As of July 1, 2025, 29.8% of the Fund’s investment portfolio was concentrated in Europe, 26.2% in North America, 11.8% in Asia, 0.8% in the Middle East, 0.7% in Australia, and 0.1% in South America, according to APA-Economics. This geographic diversification ensures balance, risk mitigation, and exposure to both mature and emerging markets.
Among the companies in which SOFAZ holds shares are some of the world’s most influential players in information technology. Since the first half of 2023, the Fund’s share in NVIDIA, the largest U.S. chipmaker, has significantly grown, increasing from $444 million in the first quarter to $663 million in the second, marking a 49% rise in just three months. Similarly, investments in Microsoft have grown by 37%. Although SOFAZ slightly reduced its holdings in Apple Inc., it increased investments in Amazon, Meta Platforms, Tesla, and other high-performing technology corporations. This trend reflects a deliberate shift toward innovation and digital infrastructure - a recognition that future economic power will depend as much on data and technology as on energy.
According to SOFAZ’s Director of Risk Management, Vadim Pshenichny, the Fund currently holds shares in 1,400 major companies across 23 countries, with equity investments accounting for 22% of its total portfolio. Such a diversified and extensive presence not only enhances the Fund’s global resilience but also elevates Azerbaijan’s financial image on the world stage.
While Europe remains the largest share of SOFAZ’s investments, the Fund continues to focus on opportunities in other parts of the world. In May 2025, SOFAZ and the Abu Dhabi-based global investment company Lunate Capital announced a $50 million investment in ADNOC Gas Pipeline Assets LLC (AGPA) through a dedicated investment fund managed by Lunate, according to Trend News Agency. AGPA holds usage rights for one of the UAE’s most important energy infrastructure assets, ensuring the reliable and efficient transportation of natural gas across the country. The gas pipeline system operates under a long-term agreement between AGPA and the state-owned company ADNOC.
Photo: Reuters
The AGPA network spans 982 kilometers and includes 38 pipelines - 12 for gas sales, 15 for gas injection, and 11 for liquefied natural gas transportation. This type of infrastructure investment highlights SOFAZ’s strategic understanding of global energy logistics and its effort to strengthen partnerships with leading energy economies in the Gulf region.
The growing international presence of SOFAZ serves not only as a financial success story but also as an expression of Azerbaijan’s evolving role in global economic governance. By investing in high-quality foreign companies and infrastructure assets, the Fund creates a buffer for the national economy, ensuring steady income even during periods of energy market volatility. Such a policy of cautious expansion and sustainable growth contributes to the stability of national assets and the protection of Azerbaijan’s future generations.
From airports to solar power plants, from semiconductor giants to high-speed railways and gas pipelines, SOFAZ’s portfolio tells a story of strategic evolution. It is no longer just a fund managing oil wealth - it has become a global investor capable of shaping international economic relations. Each new investment strengthens Azerbaijan’s financial independence, deepens its integration with advanced economies, and demonstrates that oil money, when managed wisely, can build bridges to a more sustainable and diversified future.
SOFAZ’s trajectory embodies a crucial truth: the wealth of a nation is not measured solely by its natural resources, but by its ability to transform them into sustainable prosperity. Through disciplined governance, global partnerships, and forward-looking investments, the State Oil Fund of Azerbaijan continues to turn the country’s energy revenues into enduring economic power. setting an example for how resource-rich nations can invest not just in profit, but in progress.
By Tural Heybatov
