Expects Largest Global Investment Fund to Increase Selling of Israeli Shares in Response to Tensions in Gaza and West Bank
Norway's sovereign wealth fund, the world's largest, has announced its decision to divest from more Israeli companies due to the escalating situation in Gaza and the West Bank. The fund, managed by Norges Bank Investment Management (NBIM), has already divested from 23 Israeli companies since June 2025, with an additional 6 companies being divested recently.
The divestments are a result of ethical concerns raised by NBIM's ethics council about companies contributing to or profiting from Israeli activities in the occupied Palestinian territories. However, the fund has not yet disclosed the full list of all companies divested, stating it will do so only after completing the sales and providing detailed justifications.
Some companies reported by Norwegian financial media to have been divested earlier include Paz, Azorim, Delek Motors, El Al, Energix, eToro, Max Stock, Levinsky Engineering, Priortech, Rami Levy, REIT 1, Retailors, Sela Real Estate, Amos Luzon Group Development and Energy, Firon, Skop Metals, and Beit Shemesh Engines, a company that provides services to Israel's armed forces.
Despite these divestments, the fund still holds investments worth about NOK 19 billion (~$1.9 billion) in 38 Israeli companies as of mid-August 2025. It is worth noting that Norway’s parliament rejected a full divestment from all companies operating in these territories in June 2025. However, the fund continues to conduct quarterly ethics reviews and may exclude more companies as needed in line with responsible investment policies.
NBIM's CEO, Nicolai Tangen, has stated that they expect to divest from more companies in the future. The fund has also terminated contracts with external asset managers handling some of its Israeli investments and has already divested parts of its portfolio in Israel over the worsening humanitarian crisis in Gaza.
In recent days, NBIM divested stakes in 11 Israeli firms, including Bet Shemesh Engines Ltd (BSEL), but did not name the other companies involved. The fund declined to name the external portfolio manager it used to invest in BSEL. The discussions between NBIM and Bet Shemesh Holdings were primarily about the company's business in the United States, not the war in Gaza. Bet Shemesh Engines did not respond to requests for comment.
NBIM posted a 698 billion Norwegian crowns ($68.28 billion) profit for the first half of the year, primarily driven by good returns in the stock market, particularly in the financial sector. The profit earned an overall return of 5.7% in line with its benchmark index. In addition to investing in stocks, NBIM also invests in bonds, real estate, and renewable energy projects.
- The Norwegian sovereign wealth fund, facing political and general-news scrutiny, continues to review its investments in Israeli companies, with a call from its CEO, Nicolai Tangen, to divest from more companies in the future.
- While the fund has recently divested from 11 Israeli firms, including Bet Shemesh Engines Ltd (BSEL), the full list of companies being divested due to ethical concerns regarding Israeli activities in the occupied Palestinian territories has not been disclosed, with the fund stating it will provide detailed justifications after completing sales.
