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Home > Finance > Azerbaijan's oil fund SOFAZ and Brookfield sign $1.4 billion cooperation agreement in Davos

Azerbaijan's oil fund SOFAZ and Brookfield sign $1.4 billion cooperation agreement in Davos

Published by Global Banking and Finance Review

Posted on January 21, 2026

1 min read

Last updated: January 21, 2026

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Tags:partnership investment renewable energy financial community sustainability

Quick Summary

SOFAZ and Brookfield have signed a $1.4 billion strategic agreement to explore investments in energy and digital infrastructure over the next few years.

Azerbaijan's SOFAZ and Brookfield Forge $1.4 Billion Partnership in Davos

Overview of the SOFAZ and Brookfield Agreement

BAKU, Jan 21 (Reuters) - Azerbaijan's sovereign wealth fund SOFAZ and Brookfield Asset Management signed a long-term strategic cooperation agreement worth up to $1.4 billion on Wednesday, a spokesperson for SOFAZ told Reuters.

Investment Opportunities and Areas of Focus

Under the agreement, signed at meeting in Davos, SOFAZ will assess opportunities to invest in Brookfield-managed funds and co-investment projects over the next three to four years, the spokesperson said.

Background on SOFAZ and Its Recent Investments

The partnership will also explore Azerbaijan's investment potential in areas including energy transition, renewable energy and digital infrastructure.

Financial Overview of SOFAZ

Founded in 1999, SOFAZ has expanded its investment portfolio into Europe in recent years, including the purchase last July of a 49% stake in Italian solar plants owned by U.S. renewable energy company Enfinity Global and a $66 million investment in London's Gatwick airport in October 2025.

SOFAZ's total assets as of last October, the most recent data, amounted to $70.16 billion, according to official figures.

(Reporting by Nailia Bagirova; Editing by Guy Faulconbridge )

Key Takeaways

•SOFAZ and Brookfield sign a $1.4 billion cooperation agreement.
•The partnership focuses on energy transition and digital infrastructure.
•SOFAZ aims to invest in Brookfield-managed funds.
•SOFAZ's assets totaled $70.16 billion as of last October.
•The deal was signed during a meeting in Davos.

Frequently Asked Questions about Azerbaijan's oil fund SOFAZ and Brookfield sign $1.4 billion cooperation agreement in Davos

1What is SOFAZ?

SOFAZ, or the State Oil Fund of Azerbaijan, is a sovereign wealth fund established to manage the country's oil revenues and invest in various sectors to promote economic stability.

2What is a sovereign wealth fund?

A sovereign wealth fund is a state-owned investment fund that manages a country's reserves, typically derived from natural resources, to generate returns for future generations.

3What is renewable energy?

Renewable energy refers to energy sources that are naturally replenished, such as solar, wind, and hydropower, and are considered more sustainable than fossil fuels.

4What is co-investment?

Co-investment is a collaborative investment strategy where multiple investors pool their resources to invest in a specific project or fund, sharing both risks and returns.

Overview of the SOFAZ and Brookfield Agreement

Investment Opportunities and Areas of Focus

Background on SOFAZ and Its Recent Investments

The partnership will also explore Azerbaijan's investment potential in areas including energy transition, renewable energy and digital infrastructure.

Financial Overview of SOFAZ

SOFAZ's total assets as of last October, the most recent data, amounted to $70.16 billion, according to official figures.

(Reporting by Nailia Bagirova; Editing by Guy Faulconbridge )

Key Takeaways

•SOFAZ and Brookfield sign a $1.4 billion cooperation agreement.

•The partnership focuses on energy transition and digital infrastructure.

•SOFAZ aims to invest in Brookfield-managed funds.

•SOFAZ's assets totaled $70.16 billion as of last October.

•The deal was signed during a meeting in Davos.

Frequently Asked Questions

1What is SOFAZ?

SOFAZ, or the State Oil Fund of Azerbaijan, is a sovereign wealth fund established to manage the country's oil revenues and invest in various sectors to promote economic stability.

2What is a sovereign wealth fund?

A sovereign wealth fund is a state-owned investment fund that manages a country's reserves, typically derived from natural resources, to generate returns for future generations.

3What is renewable energy?

Renewable energy refers to energy sources that are naturally replenished, such as solar, wind, and hydropower, and are considered more sustainable than fossil fuels.

4What is co-investment?

Co-investment is a collaborative investment strategy where multiple investors pool their resources to invest in a specific project or fund, sharing both risks and returns.