Oslo, Norway – Norway’s $2 trillion sovereign wealth fund, the world’s largest, announced on Monday that it has divested its stakes in 11 Israeli companies and terminated all contracts with asset managers handling its Israeli investments. The move comes as part of an urgent review prompted by the ongoing war in Gaza, which the fund described as a “serious humanitarian crisis.”
The decision follows media reports highlighting the fund’s investment in Bet Shemesh Engines Ltd, an Israeli company supplying parts for fighter jets used in the Gaza conflict. Norwegian Prime Minister Jonas Gahr Støre called the investment “worrying,” sparking a swift review by Norges Bank Investment Management, which oversees the fund.
“We have now completely sold out of these positions,” the fund stated, adding that it is continuing to evaluate its remaining stakes in 61 Israeli companies as of June 30. “These measures were taken in response to extraordinary circumstances,” said Nicolai Tangen, CEO of Norges Bank Investment Management. “We are invested in companies that operate in a country at war, and conditions in the West Bank and Gaza have recently worsened. In response, we will further strengthen our due diligence.”
The fund emphasized its long-standing focus on monitoring companies’ risk management in conflict zones and their respect for human rights. Over the past year, it has also divested from an Israeli energy company and a telecommunications group.
The divestment aligns with growing pressure from activists and governments to address Israel’s actions in Gaza. In June, Norway’s largest pension fund cut ties with companies doing business with Israel, though the Norwegian parliament rejected a proposal for the sovereign fund to divest from all firms operating in occupied Palestinian territories.
The move reflects a broader trend among European financial institutions, with several major firms reducing ties to Israeli companies, according to Reuters. Last month, Francesca Albanese, the UN Special Rapporteur on the occupied Palestinian territory, urged nations to impose a full arms embargo and sever trade and financial ties with Israel, accusing it of sustaining an “economy of genocide” through corporate complicity in the displacement and repression of Palestinians.
The Norwegian fund’s actions mark a significant step in response to the escalating conflict, with further divestments potentially on the horizon as the review continues.
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