Norway’s sovereign wealth fund, the largest in the world, has decided to pull its investments from 11 companies in Israel. This decision comes amid the escalating humanitarian crisis in Gaza and ongoing regional conflicts.
Nicolai Tangen, who leads Norges Bank Investment Management (NBIM), mentioned that the move was necessary due to “extraordinary circumstances.” He emphasized that the situation in Gaza is critical, affecting people greatly, which led to the fund’s decision to distance itself from companies operating in a war-torn area.
Valued at approximately $1.9 trillion, Norway’s sovereign fund, often referred to as the oil fund, relies heavily on income from the country’s significant energy exports. This divestment follows recent reports indicating that the fund had shares in Bet Shemesh Engines Holdings, a firm involved in manufacturing parts for Israeli military jets. Tangen acknowledged this, noting that even after the recent conflict started, their stake had grown.
The Prime Minister of Norway, Jonas Gahr Støre, has called upon Finance Minister Jens Stoltenberg to re-evaluate the fund’s investments in light of these developments.
As of mid-2023, NBIM had holdings in 61 Israeli companies, out of which 11 fell outside its standard investment index defined by Norway’s finance ministry. The fund is taking quick action to sell these chosen investments.
The fund has long focused on the implications of investing in companies associated with violence and conflict. Since 2020, it has engaged with over 60 firms on these matters, including nearly 40 linked to the West Bank and Gaza. NBIM reported that scrutiny of Israeli companies increased significantly last fall, resulting in several divestments.
