Recently, Azerbaijan’s SOFAZ reported $410.03 million in revenue from Shah Deniz in 2025 with shifts in its investment portfolio , while the CBA plans Islamic banking implementation , and the 2026 state budget outlined revenues, expenditures, and allocations across social, health, education, and housing programs.

Azerbaijan's State Oil Fund (SOFAZ) reported a revenue of $410.03 million from the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea, marking a 12.5% increase compared to the same period in 2024. According to SOFAZ, the fund’s revenue during January–September 2025 was $45.56 million higher than the previous year’s $364.46 million. The fund’s investment portfolio in bonds and other money market instruments also underwent notable changes. As of October 1, 2025, 24.9% of its portfolio consisted of AAA-rated assets — a 34-percentage point decline compared to October 2024. Meanwhile, the share of AA-rated instruments increased from 20% to 36.7%, A-rated instruments rose from 12.9% to 24.1%, BBB-rated instruments grew from 7.9% to 13.6%, and non-investment-grade instruments climbed from 0.3% to 0.7%. Investments in the Middle East saw a significant rise, reaching 1.4% of SOFAZ’s total portfolio, up from 0.3% the previous year. The share of European investments grew slightly to 30.1%, while holdings in Asia fell to 8.5%. North American assets declined from 33.1% to 24.8%, and investments in Australia and New Zealand increased from 0.7% to 1%. Holdings in Africa decreased to 0.02%, and Latin America remained at 0.1%. SOFAZ also reduced its exposure to international financial institutions from 7.1% to 2.3%. By October 1, 2025, the total value of SOFAZ’s investment portfolio reached $70.16 billion — a 14.7% increase from the previous year. Azerbaijan’s overall strategic foreign exchange reserves stood at $81.47 billion, of which $70.16 billion (86.1%) belonged to SOFAZ and $11.31 billion (13.9%) to the Central Bank of Azerbaijan (CBA). In the third quarter of 2025, total reserves rose by $3.8 billion, with SOFAZ’s assets increasing by 5.5% and the CBA’s reserves by 1.4%. Year-on-year, Azerbaijan’s foreign exchange reserves grew by $7.98 billion, mainly due to a $8.46 billion increase in SOFAZ assets, while the CBA’s reserves fell by $485.3 million.

During the Islamic Finance Forum 2025 in Baku, Rustam Tahirov, the Director of the Financial Sector Sustainable Development Department at the Central Bank of Azerbaijan (CBA), announced the identification of the first Islamic banking products to be implemented in the country. Tahirov stated that Islamic banking was being treated as an alternative financial mechanism and was now part of the CBA’s strategic priorities. "The main goal is to define the approach for implementing Islamic banking in our country, develop its strategy, and put it into practice," he emphasized. Tahirov explained that the CBA, in coordination with other government agencies, had begun analyzing international experiences and models to adapt the system to Azerbaijan’s context. "This approach envisions the introduction of Islamic banking products through the Islamic window model within banks," he stated. He added that the CBA had developed a roadmap outlining the framework and that consultations with sector associations and experts had already identified the initial products. The CBA official also underlined the importance of a legal foundation for Islamic finance. "Draft amendments have been prepared for several legislative acts, including the Civil Code, Tax Code, and the Law on Banks. These drafts have been submitted for feedback, which is currently being reviewed," he noted, emphasizing the aim to finalize and submit the legislative package to the government as soon as possible.

According to Azerbaijan’s 2026 draft state budget package, SOFAZ’s budget revenues are projected at 13.03 billion manats, a 9.8% decrease compared to 2025, while expenditures are expected to total 12.97 billion manats, down by 11.1%. The fund plans to transfer 12.84 billion manats to the state budget — 11.4% less than the previous year’s forecast. Additionally, 7.1 million manats will support the "State Program for Increasing the International Competitiveness of the Higher Education System (2019–2023)," 99.2 million manats will fund the "State Program for Education of Youth Abroad at Prestigious Foreign Universities (2022–2028)," and 32.8 million manats will finance international dual-degree programs in line with the presidential decree of July 22, 2025. In 2026, expenditures of the State Social Protection Fund (SSPF) are expected to surpass 8.48 billion manats, an increase of 10.5% from 2025. The majority of the SSPF’s budget will go toward labor pensions, social benefits, and operational costs of its central and regional offices. The Unemployment Insurance Fund (UIF) is projected to spend 266.4 million manats in 2026, a 2.2% increase from 2025. A total of 100 million manats will be allocated to the Mortgage and Credit Guarantee Fund, including 85 million manats to increase its charter capital and 15 million manats to subsidize interest rates on business loans issued in manats between 2018 and 2026, aiming to meet housing demand and promote entrepreneurship. In 2026, expenditures of the Mandatory Health Insurance Fund (MHIF) are projected at 2.62 billion manats, 10.9% less than in 2025. Additionally, 900 million manats — 2.2% of the state budget — will be allocated to the MHIF, a 36.5% decrease from the previous forecast. Education spending in Azerbaijan’s 2026 state budget is projected at 5.02 billion manats ($2.95 billion), a 1.6% increase compared to 2025 and a 14.3% rise compared to 2024. The allocation includes 2.41 billion manats (48.1%) for general education, 796.1 million manats (15.9%) for higher education, and 468.2 million manats (9.3%) for preschool education. Spending on general education is expected to increase by 2.9%, and preschool education by 0.2% compared to 2025.