Monitoring Desk: Professor Elshad Mammadov, Head of the Department of Economics and Economic Relations at Odlar Yurdu University, has said that the diversification of the State Oil Fund of the Republic of Azerbaijan’s (SOFAZ) investment portfolio is a positive development.
In an interview with AZERTAC News Agency, leading economist Elshad Mammadov said that SOFAZ’s focus on real-sector investments, particularly those generating added value, is essential for securing sustainable economic dividends. He thought that investing in the real sector is economically justified, and as alternative energy generation is a priority in Europe, including Italy, where economic indicators in the sector are improving.
“SOFAZ’s investment in renewable energy projects in Italy through its partnership with Enfinity Global promises to have a positive impact on the Fund’s economic performance,” he added.
Mammadov underscored the importance of prioritizing real-sector investments that generate added value, as such investments enhance portfolio diversification, efficiency, and sustainability while promoting stable economic outcomes.
This investment aligns with SOFAZ’s long-term strategic objectives, creating a stable, predictable, and inflation-adjusted revenue stream in Europe through Power Purchase Agreements (PPAs), while contributing to the global transition to sustainable energy. It strengthens SOFAZ’s position in long-term infrastructure assets, expands its real-sector portfolio, and deepens its presence in a key European market.
Commenting on the agreement with Enfinity Global, Eyyub Karimli, Chairman of the Public Union for Economic and Social Research Assistance, told AZERTAC that the deal is of great significance and will impact both SOFAZ’s revenues and its international standing.
“This investment ensures a diversified and stable income stream, as Enfinity Global possesses a robust infrastructure that generates consistent revenue in the European market. It also adds a sustainable, inflation-resistant revenue source to SOFAZ’s real asset portfolio, reducing dependency on volatile oil prices and enhancing financial stability,” Karimli explained.
He further noted that the investment will generate euro-denominated revenues, supporting diversification of SOFAZ’s currency basket.
“By partnering with European companies, SOFAZ positions itself as a reliable investor, expanding its international reach and enhancing Azerbaijan’s global image. This also strengthens SOFAZ’s presence in the international real asset market and promotes Azerbaijan as a capital-exporting country – potentially encouraging future foreign direct investment,” Karimli concluded.
