Norway orders world's largest wealth fund to review Israeli stakes after criticism
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The news: Norway has ordered a review of its USD2 trillion sovereign wealth fund’s investments in Israeli companies after ongoing complaints about its ties to companies linked to the war in Gaza.
Finance Minister Jens Stoltenberg directed the central bank and the fund’s ethics council to conduct the review, citing the “worsened situation” in the region.
The context: The move follows mounting criticism from political parties, unions and activists alleging that the world’s largest sovereign fund is backing companies contributing to the war in Gaza and the occupation of the West Bank.
It also follows a report by the Aftenposten daily saying the fund had increased its stake in Bet Shemesh Engines, an Israeli jet engine company that provides services to Israel’s armed forces.
What they said: Prime Minister Jonas Gahr Støre said he was “very concerned” by the report and wanted to get “good answers”.
"We must get clarification on this because reading about it makes me uneasy," he reportedly told public broadcaster NRK.
Finance Minister Stoltenberg said the goal of the review was to “make sure that the fund is not invested in companies that are contributing to the illegal occupation of the West Bank and the war in Gaza that violates international law.”
“The war in Gaza is contrary to international law and is causing terrible suffering, so it is understandable that questions are being raised about the fund’s investments in Bet Shemesh Engines,” Stoltenberg added.
The numbers: According to The Financial Times, Norway’s sovereign wealth fund, holds investments in 65 Israeli companies totalling USD2.1 billion representing about 0.1% of its assets. Its stake in Bet Shemesh Engines rose from 1.3% in 2023 to 2.1% in 2024, worth USD15.2 million, Reuters noted citing the latest available records from Norges Bank Investment Management, which manages the fund.
The sources: Financial Times, Reuters, Bloomberg
