Azerbaijan signs strategic investment agreements with Brookfield, BlackRock and GIP at Davos

(HORIZON WEEKLY) – At the World Economic Forum in Davos, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) formalized several long-term investment cooperation frameworks with global asset managers Brookfield Asset Management, BlackRock and Global Infrastructure Partners (GIP). The agreements are intended to explore large-scale investment opportunities in infrastructure, digital and energy-related sectors over the next three to four years.

Under the most substantive of these arrangements, SOFAZ and Brookfield signed a strategic cooperation agreement providing for potential investments of up to $1.4 billion in Brookfield-managed funds and co-investment structures. The agreement was signed on the margins of the World Economic Forum meeting and establishes a framework for assessing potential participation in energy, infrastructure, renewable energy and digital assets.

In separate frameworks, SOFAZ entered into Memoranda of Intent with BlackRock and its infrastructure investment affiliate GIP. These agreements do not commit fixed capital but envisage the assessment of potential co-investment opportunities, with capital commitments of up to $1.5 billion under consideration over the coming three to four years. The focus areas include transport and logistics, digital infrastructure and data centres, energy transition and renewable energy projects, and real estate and airport infrastructure.

Officials said sector-specific working groups, joint expert reviews, and technical sessions will support implementation, enabling the exchange of expertise and alignment with international operational and governance standards.

SOFAZ, established in 1999 to manage Azerbaijan’s hydrocarbon export revenues, has expanded its investment portfolio in recent years, including stakes in European renewable energy assets and infrastructure projects. The latest cooperation frameworks with Brookfield, BlackRock and GIP form part of a broader strategy to diversify SOFAZ’s exposure and explore new commercial opportunities beyond traditional energy markets.

Representatives from the three firms and SOFAZ highlighted that the agreements are exploratory in nature and subject to further due diligence and customary closing conditions. Discussions in Davos also included meetings between Azerbaijan’s leadership and executives of the partner firms.