Oil Fund lost 2.4 billion from price changes

The State Oil Fund (SOFAZ) experienced a loss of $2.46 billion (-5.2%) in investment revenues last year due to the depreciation of bonds and shares in its portfolio, according to SOFAZ's financial report for 2022. Despite this, the fund's assets increased from $45.03 billion to $49.03 billion by the end of the year. The report reveals that 62.1% of the portfolio was invested in debt obligations and money market instruments, 19.6% in stocks, 6.2% in real estate, and the remaining 12.1% in gold investments.

However, since its inception until January 2023, SOFAZ has received a total of $7.8 billion in investments, resulting in an annual return of 2.3%, as stated in the report.

Economist Gubad Ibadoglu Economist Gubad Ibadoglu, in an interview with Radio Azadlig, expressed concerns about the lack of transparency and accountability in SOFAZ's management of its foreign exchange funds. He highlighted the fund's involvement in the real estate market, managed by a few select companies without clear information on the selection process or criteria.

Financial markets experienced turbulence last year, and experts argue that greater professionalism was required to navigate the market successfully. While professionals also suffered losses, the magnitude of their damage was not as significant as the 5.2% loss incurred by the Oil Fund, suggesting the presence of subjective factors.

Established in 1999, SOFAZ began receiving funds in 2001 and had accumulated approximately $160 billion by 2020. As of April 1 this year, the remaining balance in the fund was $53.44 billion. The remaining funds were transferred to the country's budget for various projects.