Norway Plans to Review its Sovereign Fund Investments in Israel

SadaNews Economy - The Norwegian government announced on Tuesday that it has ordered a review of its sovereign wealth fund portfolio to ensure the divestment from Israeli companies contributing to the entrenchment of the occupation of the West Bank or the war in Gaza.

This review comes after a report published by the daily "Aftenposten" stated that the fund, which is valued at $1.9 trillion, acquired a stake in an Israeli aviation group providing services to the Israeli armed forces, including maintenance services for fighter jets, during 2023 and 2024.

Norwegian Prime Minister Jonas Gahr Støre told the Norwegian Broadcasting Corporation that the fund's investment in "Beit Shemesh Engines Limited" is concerning. He added, "We need clarification on this matter, as it raises concerns for me."

The latest available records from "Norges Bank Investment Management," which manages the fund, indicate that it acquired a 1.3 percent stake in "Beit Shemesh Engines" in 2023, before raising this stake to 2.09 percent by the end of 2024, valuing its shares at $15.2 million.

In light of the "Aftenposten" report and the security situation in Gaza and the West Bank, Finance Minister Jonas Stoltenberg stated on Tuesday that the central bank will conduct a review of the holdings of "Norges Bank Investment Management" in Israel.

Nikolai Tangen, CEO of "Norges Bank Investment Management," told the Norwegian Broadcasting Corporation that "Beit Shemesh Engines" was not included in any of the recommended exclusion lists, such as those from the United Nations or the fund's Ethical Council.

The Norwegian Parliament rejected in June a proposal to divest the sovereign wealth fund from all companies operating in the occupied Palestinian territories.

Records show that the fund, which holds stakes in 8,700 companies worldwide, possessed shares in 65 Israeli companies valued at $1.95 billion by the end of 2024.

Last year, the Norwegian sovereign wealth fund, the largest in the world, sold its stakes in an Israeli energy company and a telecommunications group, and its Ethical Council indicated that it is considering whether to recommend divesting from five banks.