"Norway's colossal $2 trillion investment portfolio set for a reassessment of its holdings in Israeli companies"
Norway Reviews Israeli Investments Amid Ethical Concerns Over Conflict in Gaza
Norway's Finance Minister Jens Stoltenberg has announced a renewed review of the country's $2 trillion sovereign wealth fund's investments in Israeli companies. The decision comes in response to growing ethical concerns surrounding the ongoing conflict in Gaza and the Israeli presence in Judea and Samaria.
In May 2025, Norway, along with Ireland and Spain, announced its intention to recognize the "State of Palestine." This decision has sparked political debate in Norway, ahead of national elections on September 8.
The fund, one of the world's largest and most influential in environmental, social, and governance investments, holds shares in approximately 65 Israeli companies, totaling $1.95 billion as of the end of 2024 [1]. The fund has already sold stakes in an Israeli energy company and a telecom group, and is currently reviewing investments in five Israeli banks.
The review was prompted by reports that the fund had invested in Bet Shemesh Engines Ltd., an Israeli jet engine company that provides maintenance services to Israel's armed forces. In response, the finance ministry is assessing the use of external portfolio managers for some of the fund's holdings, including the Bet Shemesh stake.
Stoltenberg has clarified that while some measures may be implemented quickly, the broader plan will unfold over time. He ruled out any hasty divestment or blanket withdrawal of Israeli investments in response to the ongoing conflict in Gaza. A sweeping divestment from Israeli companies was not on the table, as explained by Stoltenberg.
The ethics watchdog has blacklisted 11 companies for assisting Israel's "occupation," most recently Israeli petrol station chain Paz and Israeli telecommunications company Bezeq. Norway's legislature voted against a proposal to divest from all companies operating in "occupied Palestinian territories" in June.
The fund employs three Israeli external fund managers for some of its Israeli investments. However, the review is expected to scrutinize these relationships and potentially lead to changes in the fund's management strategy.
The fund's actions reflect a growing international movement to hold companies accountable for their role in human rights violations and international law violations. Norway's renewed review of its Israeli investments is a significant step in this direction, demonstrating the country's commitment to ethical investing and promoting peace in the Middle East.
References: [1] The Guardian. (2025, August 12). Norway to review Israeli investments over Gaza conflict. Retrieved from https://www.theguardian.com/world/2025/aug/12/norway-to-review-israeli-investments-over-gaza-conflict [2] Reuters. (2025, August 12). Norway's sovereign wealth fund to review Israeli investments amid Gaza conflict. Retrieved from https://www.reuters.com/world/middle-east/norways-sovereign-wealth-fund-review-israeli-investments-amid-gaza-conflict-2025-08-12/
- The renewed review of Norway's investments in Israeli companies, due to ethical concerns related to the conflict in Gaza, is a significant step in a growing international movement that aims to hold companies accountable for their role in human rights violations and international law violations.
- The ongoing review of the Norwegian sovereign wealth fund's investments in Israeli businesses, as a result of the Gaza conflict and Israeli presence in Judea and Samaria, is influencing the nation's broader business, finance, and political landscapes, particularly with elections approaching and increasing general-news discussions about Palestine.
