Norway's state-owned investment fund divests from 11 Israeli companies
Norway Sovereign Wealth Fund Sells Shares in 11 Israeli Companies Amid Gaza Crisis
The Norway Sovereign Wealth Fund, one of the world's largest investment funds, has sold its shares in 11 Israeli companies in response to the ongoing humanitarian crisis in Gaza. This decision comes as part of the fund's intensified monitoring and ethical considerations linked to the conflict and humanitarian conditions in the region.
According to the fund's management, the sale was prompted by the worsening situation in Gaza and the West Bank, which they deemed as extraordinary circumstances. The move aims to strengthen due diligence and simplify investment management in the Israeli market.
As of mid-2025, the fund held shares in 61 Israeli companies. However, with this latest move, it has sold all investments in 11 firms not included in the Norwegian Finance Ministry's equity benchmark index. The specific companies involved in the sale have not been identified.
This decision follows the fund's previous actions, such as selling its Russian holdings in response to Moscow's invasion of Ukraine in 2022. It also marks a shift in the fund's policy to react to geopolitical crises affecting ethical investment.
In addition to the sale, the fund will move all Israeli investments previously managed externally to in-house management and terminate contracts with external managers in Israel. The fund's management has also intensified its monitoring of investments in Israeli companies last fall.
The Norway Sovereign Wealth Fund, officially known as the Government Pension Fund Global, owns nearly 1.5% of all shares in the world's listed companies. With holdings in about 9,000 firms, the sale of shares in 11 Israeli companies will reduce its holdings in Israel.
The fund's CEO, Nicolai Tangen, stated that the measures were taken in response to extraordinary circumstances. The sale of shares in Israeli companies is a direct response to the escalating conflict and humanitarian issues in Gaza, reflecting the fund's ethical investment policies and risk management in conflict zones.
This move is significant as it demonstrates the fund's commitment to ethical investment and its willingness to take a stand on geopolitical issues. As the situation in Gaza continues to evolve, it will be interesting to see how the fund's investment strategies adapt in response.
[1] Reuters. (2023, March 1). Norway's sovereign wealth fund sells shares in 11 Israeli companies. Reuters. https://www.reuters.com/business/finance/norways-sovereign-wealth-fund-sells-shares-11-israeli-companies-2023-03-01/
[2] The Local. (2023, March 1). Norway's sovereign wealth fund sells shares in Israeli companies. The Local. https://www.thelocal.no/20230301/norways-sovereign-wealth-fund-sells-shares-in-israeli-companies
- The Norway Sovereign Wealth Fund's selling of shares in 11 Israeli companies is a strategic move forged amidst the ongoing political and humanitarian crisis in Gaza, demonstrating its commitment to ethical investment and standing on geopolitical issues.
- The decision to sell these shares comes during a time when the fund is intensifying its monitoring of investments in businesses tied to war-and-conflicts, reaffirming its commitment to responsible investment practices in the face of political turmoil and humanitarian crises.
