oil fund

An oil fund is a financial reserve created from the revenues generated by a country’s oil exports. Its purpose is to save and manage the accumulated wealth for future generations, stabilize the economy during fluctuating oil prices, and finance public projects or social programs. Essentially, it acts as a savings account funded by oil income, helping to ensure economic stability and sustainability when oil resources are depleted or prices drop. Many countries, especially those rich in oil, establish such funds to responsibly handle their natural resource wealth.