The State Oil Fund of the Republic of Azerbaijan (
Azerbaijani: Azərbaycan Respublikasının Dövlət Neft Fondu), also known by its abbreviation SOFAZ, is a
sovereign wealth fund of Azerbaijan founded in December 1999.[1]
Nearly all the fund's revenues come from Azerbaijan's
oil and
gas exports.[2][3] The fund has been criticized for its lack of transparency and for enriching Azerbaijan's political elites.[4][5]
History and organization
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) was established by
Heydar Aliyev's Decree No. 240 dated December 29, 1999.[6][7] Statue of the State Oil Fund was approved by the Decree of the President of the Republic of Azerbaijan No. 434 dated December 29, 2000.[8]
SOFAZ has been criticized for lacking transparency in its finances and in its contracting, which has raised questions about corruption.[4] Critics have described projects funded by SOFAZ as useless,[5] and noted that contracts have been awarded to companies owned by the ruling Aliyev family in Azerbaijan.[4] Funds from SOFAZ are frequently transferred to make up for state deficits.[4]
Executive Director
The operational management of the Fund's activities is carried out by the Executive Director who is appointed and dismissed by the President.[9] As of 2018, the executive director reports to the President.[10] There have been three executive directors since 2001: