Azerbaijan’s sovereign wealth fund has invested in London Gatwick Airport, one of Europe’s busiest aviation hubs — marking a major step into UK infrastructure. The State Oil Fund of the Republic of Azerbaijan (SOFAZ) completed its investment in partnership with Global Infrastructure Partners (GIP), Gatwick’s long-term shareholder and operator. SOFAZ has invested £50 million (≈ €58.5 million) in the airport, which is said to be one of its largest infrastructure commitments to date in Europe.
A Strategic Bet on UK Aviation
The deal comes as Gatwick enters a new phase of expansion. In September 2025, the airport was granted a Development Consent Order (DCO) by the UK government to begin full commercial use of its Northern Runway. The plan will allow capacity to rise above 70 million passengers annually and support Gatwick’s £2.2 billion (€2.56 billion) redevelopment programme, which includes terminal upgrades, new rail access, and sustainability measures.
The head of SOFAZ, Israfil Mammadov, described this investment as a significant milestone in the fund’s global strategy.
“This historic transaction shows how we want to partner with world-class institutions in resilient, scalable, long-term value assets,” said Israfil Mammadov, Executive Director of SOFAZ.
In 2024, passenger traffic is expected to reach 43.2 million, compared to 46.6 million in 2019. Overall volumes are projected to exceed pre-COVID levels once the Northern Runway becomes fully operational. Gatwick currently serves more than 200 destinations in 90 countries and is a major base for easyJet, TUI, and British Airways short-haul operations.
Structure of the Investment
Gatwick retains the same ownership: VINCI Airports (50.01%) and GIP (49.99%), with GIP maintaining operational control. SOFAZ’s investment was made through GIP, ensuring that the ownership and management structure remain intact without a direct share purchase. This structure allows SOFAZ to benefit from Gatwick’s growth while preserving the existing shareholding framework.
A GIP spokesperson said:
“Gatwick Airport is the kind of high-quality infrastructure that delivers strong performance and sustainable growth for our investors and communities.”
Why Gatwick
Gatwick has long been recognised as a resilient and scalable transport asset, appealing to long-term institutional investors. According to Mammadov, SOFAZ views the airport as more than a financial holding:
“Gatwick Airport is a key gateway for Europe and a strong, sustainable investment that reflects SOFAZ’s global vision.”
For years, Gatwick’s proposal for a second runway has been under consideration. Supporters believe it will ease congestion at Heathrow and distribute air traffic more evenly across southern England. The Northern Runway upgrade is expected to create up to 14,000 new jobs and add nearly £1 billion (€1.16 billion) a year to the UK economy.
A Broader Pattern of Sovereign Fund Moves
Gatwick is not an isolated case. SOFAZ’s decision reflects a wider trend among global sovereign wealth funds, which are diversifying away from energy investments and focusing on European transport and logistics assets that provide stable, inflation-protected returns.
Founded in 1999, SOFAZ manages over $50 billion (€46 billion) in assets derived from Azerbaijan’s oil and gas revenues. Over the past decade, it has expanded globally — investing in London commercial properties, Paris office complexes, and Asian logistics networks.
The Gatwick investment strengthens SOFAZ’s position among leading sovereign investors in Western Europe.
The BlackRock–GIP Connection
Following BlackRock’s acquisition of Global Infrastructure Partners (GIP) in early 2025, the merged group became one of the world’s largest infrastructure platforms, managing more than $150 billion (€138 billion) in transport, energy, and digital assets. The merger has enhanced GIP’s capacity to attract sovereign investors such as SOFAZ, which prefer long-term exposure through co-investment vehicles rather than direct ownership stakes.
Industry View
Analysts cited by Reuters say the agreement shows renewed global confidence in UK infrastructure despite economic headwinds. Sovereign investors continue to favour regulated transport assets that provide predictable cash flows in stable legal frameworks such as the UK.
Economists add that airports generate steady revenues from landing fees, commercial operations, and regulated tariffs, making them highly attractive for funds seeking low-risk, inflation-linked returns.
A Calculated Move
The Gatwick investment reduces Azerbaijan’s reliance on hydrocarbons while increasing exposure to sustainable, income-generating European assets. The deal with SOFAZ and GIP brings long-term capital to support one of the most ambitious airport expansion programmes in the UK in the past decade.
The partnership reflects long-term confidence built on shared capital, connectivity, and vision.
