The oil industry plays a very important role in our lives. Although oil is the national wealth of the Azerbaijani people, this valuable resource was sufficiently exploited over the years by Tsarist Russia and later by the Soviet state. However, after the restoration of state independence, and despite the fact that the country's economy was in a deep recession, as a result of the far-sighted policies of the National Leader Heydar Aliyev, Azerbaijan was able to benefit from its rich hydrocarbon resources. In the early 1990s, Azerbaijan, which was going through a difficult period from a political, economic and military point of view, managed to sign the “Contract of the Century” as a result of the intense struggle of Heydar Aliyev. The Great leader Heydar Aliyev, after long negotiations, involving famous oil companies of the world in this work, directed all the income received from oil, both politically and economically, to the well-being and future interests of the Azerbaijani people.

The next stage of the oil strategy, implemented with great foresight by the National Leader Heydar Aliyev, is the collection and effective management of oil revenues obtained from the joint development of the country's oil fields with foreign companies, ensuring the preservation of these funds for future generations, the development of innovative fields and the significant socio-economic significance of the funds that determined the implementation of the projects. For this purpose, the Great leader Heydar Aliyev established the State Oil Fund of the Republic of Azerbaijan (SOFAZ) by Decree No. 240 dated December 29, 1999. The Regulation on the Oil Fund was approved by Decree No. 434 dated December 29, 2000.

In modern times, oil plays an important role in ensuring energy security and socio-economic development of each country. The State Oil Fund ensures the collection, effective management and preservation of our country's income related to the implementation of agreements on oil and gas resources for future generations. SOFAZ is an extra-budgetary separate state institution. The main objective of creating this fund is to ensure that the oil factor serves the strategic interests of the country. The National Oil Strategy provides for the attraction of foreign investment and experience, the creation of a multi-variant export system, effective, transparent management and the use of the revenues received.

Currently, the fund finances important socio-economic projects, the successful implementation of which serves the comprehensive development of the country.

Today, these funds are effectively managed by SOFAZ, financing of all important projects is carried out for the sake of socio-economic progress of our country. As in all areas, Azerbaijan has achieved breakthrough development in the oil sector, and this development has a significant impact on the rate of economic growth of the country, the volume of industrial production, investments, and the expansion of budgetary opportunities. Thanks to the constantly growing financial capabilities of the country, new projects are being implemented, countless achievements have been made in the direction of regional development, infrastructure renewal, progress in the non-oil sector, and the creation of new jobs. The State Oil Fund makes an important contribution to stimulating the country's economic development and implementing strategically important state programs and projects. For this purpose, financing of important infrastructure and social projects in the country was ensured by increasing oil revenues, and accordingly, the funds of the fund.

Since its establishment, transparency has been one of the main principles of the State Oil Fund. As a result of its transparent activities, in May 2007, SOFAZ was awarded the “UN Public Service Award”. The State Oil Fund is the first state institution to receive this award among state institutions in Eastern Europe and the CIS countries. One of the important projects financed by SOFAZ was the “State Program for Education of Azerbaijani Youth in Foreign Countries in 2007-2015”, approved by the Decree of the President Ilham Aliyev.

Since the beginning of its activities, SOFAZ has implemented a number of important measures to achieve its goals and fulfilled these obligations in a timely manner. The State Oil Fund, which has become an internationally recognized fund in a short period of time, is currently ranked among the 60 most transparent sovereign wealth funds in the world.

Today, the State Oil Fund, together with its institutional set-up, has become known domestically and abroad, capable of sharing its experience with other states in matters of fund management and ensuring transparency. The high successes and reputation of SOFAZ both in Azerbaijan and in the international arena were achieved as a result of collective work and joint efforts. The State Oil Fund, founded by the National Leader and created by the President Ilham Aliyev, will, as always, faithfully serve the benefit of the people and future generations.

Recommended literature:

1. Azərbaycan Respublikası Dövlət Neft Fondu haqqında / Himayədar Humanitar Təşkilatının nəzdindəki Azərbaycanın Neft Sənayesi üzrə İnformasiya və Resurs Mərkəzi ; tərt.: A. N. Muradov, R. Nurəliyev, M. Ə. Mahmudov ; red.: H. Rizvanqızı, İ. Məmmədli. - Bakı : Azərnəşr, 2006. - 332 s.
2. Azərbaycan Respublikası Dövlət Neft Fondu. - Bakı : n. y., n. i. y. - 20 s.
3. Abbasov, Çingiz Mikayıl oğlu. Azərbaycanın dünya iqtisadiyyatına inteqrasiya yolları [Mətn] : [monoqrafiya] /Ç. М. Аbbasov ; məs. red. Ə. Х. Nuriyev ; rus dilindən tərc. ed. А. Q. Rəhmanov; Azərb. Resp. Prezidenti yanında Dövlət İdarəçilik Akad.; Geostrateji Araşdırmalar Mərkəzi; Açıq Cəmiyyət İnstitutu - Yardım Fondu. - Bakı: Elm, 2005. - 252 s.