Norway‘s $2 trillion sovereign wealth fund has announced that it is terminating all contracts with asset managers handling its Israeli investments and has divested parts of its portfolio due to the ongoing Gaza war. The fund, which is an arm of Norway’s central bank and the world’s largest, held stakes in 61 Israeli companies as of June 30 but has recently divested stakes in 11 of these companies.
“We have now completely sold out of these positions,” the fund said, adding that it is continuing to review Israeli companies for potential divestments. Nicolai Tangen, the CEO of Norges Bank Investment Management, explained that “these measures were taken in response to extraordinary circumstances. The situation in Gaza is a serious humanitarian crisis.” He further emphasized that the fund will strengthen its due diligence in response to the worsening conditions in the West Bank and Gaza.
The Norwegian government began its review after Aftenposten, the country’s leading newspaper, revealed that the fund had a stake in Bet Shemesh Engines Ltd (BSEL), which provides parts to Israeli fighter jets deployed in the war on Gaza. Norwegian Prime Minister Jonas Gahr Store had expressed concerns over the investment, calling it “worrying.”
The fund has a history of paying particular attention to companies associated with war and conflict. “We constantly monitor companies’ risk management related to conflict zones and respect for human rights,” it said. This move is part of a broader trend where several European financial firms have cut back their links to Israeli companies or those with ties to the country due to pressure from activists and governments to end the war in Gaza.
The United Nations special rapporteur on the occupied Palestinian territory, Francesca Albanese, has called on countries to cut off all trade and financial ties with Israel, including a full arms embargo. In a report titled “From Economy of Occupation to Economy of Genocide,” Albanese detailed the corporate machinery sustaining Israel’s settler-colonial project and singled out companies for their complicity in Israel’s repression of Palestinians.
This development comes amid growing international concern over the conflict and its humanitarian implications. The Norwegian pension fund’s decision to sever ties with companies doing business with Israel reflects a broader movement among European countries to reevaluate their economic relationships with Israel.