Euronews: SOFAZ strengthens Azerbaijan's role as bridge between Asia and Europe

The participation of the State Oil Fund of Azerbaijan (SOFAZ) in the establishment of the China-ASEAN Joint Investment Council reflects the country's position as a bridge between Asia and Europe, according to an article on Euronews, cited by Report.

SOFAZ joined five Asian sovereign and pension investors to establish the China-ASEAN Joint Investment Council at the China International Fair for Investment and Trade in Xiamen this week. The fund has thus become one of the founding members of an organization operating in a market with a population of more than 2 billion people.

The other founding members are China Investment Corporation (CIC), Thailand's Government Pension Fund, Malaysia's Khazanah Nasional Berhad and pension fund KWAP, as well as the Indonesia Investment Authority (INA). CIC initiated the establishment of the council, while Singapore-based CGS International Securities serves as its secretariat.

The article notes that trade between China and ASEAN surpassed $1 trillion for the first time in 2025, reaching $1.05 trillion, up 7.4% from the previous year. Meanwhile, Southeast Asia attracted a record $243.9 billion in foreign direct investment, up 9.7% and accounting for 15% of global FDI.

As Euronews notes, SOFAZ"s participation in the group reflects Azerbaijan's position on the global map. The country lies along the Middle Corridor, a rail and maritime route across the Caspian Sea that carries cargo between Asia and Europe. In 2024, the European Commission allocated €10 billion for the development of the route under the Global Gateway initiative.

The article also notes that as transport connectivity develops, Azerbaijan's importance as a link between the two regions is increasing.

According to SOFAZ, as cited in the article, the fund believes that not only goods but also capital can move along the route. This gives it an opportunity to cooperate with institutions investing at the Asian end of the corridor and broadens the range of partners available to a long-term investor.

Euronews notes that SOFAZ entered the Chinese market in 2015, acquiring its first yuan-denominated assets on July 1. In April 2025, during Azerbaijani President Ilham Aliyev's state visit to China, the fund signed a memorandum of understanding with CIC.

In April 2026, the memorandum led to investments, with SOFAZ, CIC and INA establishing the Galaxy Orientis China-ASEAN investment program.

The private equity fund raised about $520 million in its first stage against a target of $1 billion. It invests in industry, healthcare, consumer goods, business services and technology. The program is managed separately from the council.

SOFAZ, which manages Azerbaijan's oil and gas revenues, held assets worth $72.6 billion as of the end of June.

The article says the council provides access to specialized institutions, local market knowledge and earlier insight into investment trends.

The council is beginning operations without its own capital: it is not a fund, and membership does not create any investment obligations. Each institution will make its own investment decisions independently. The initial phase will focus on forums and joint research, with investments to follow in areas where the interests of members align.