Azerbaijan’s level of fiscal transparency is assessed as higher compared to many regional countries, including several member states of the Gulf Cooperation Council (GCC), APA-Economics reports, citing the international rating agency “S&P Global Ratings.”
It was noted that the State Oil Fund of the Republic of Azerbaijan (SOFAZ) publishes detailed, audited annual reports that reflect clear and transparent information about the composition of its assets, investment strategy, and performance results. Nevertheless, despite the high transparency, Azerbaijan’s net general government assets are more moderate compared to the large GCC sovereign wealth funds.
“Azerbaijan’s net fiscal asset position remains one of the country’s key credit strengths and develops in parallel with strong external balance indicators. We expect that the consolidated general government’s net asset position will exceed 50% of GDP by 2028, supported by continued accumulations in SOFAZ and low levels of public debt. Our net government debt metric includes only the highly liquid assets held abroad by SOFAZ (the buffers the government can mobilize most quickly), while assets with lower liquidity (around 10% of GDP in 2024) are not included in this calculation,” the rating agency also noted.
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