Norway’s wealth fund divests from 11 Israeli companies

The Norwegian sovereign wealth fund has announced a major reduction in its holdings in Israeli companies and that it has broken off its connection with the financial institutions that undertake its investments in Israel.

The fund published a statement on its website today following intense political and public pressure to halt investing in Israel, even in companies that have been found in the past not to be involved directly in business over the Green Line or in the war in Gaza.

According to the fund’s announcement the decision was implemented over the past few days, following a demand from the Norwegian Ministry of Finance to review the fund’s investments in Israel.

As of July, the fund held stakes in 61 Israeli companies, after companies such as Bezeq and Paz were removed from the list of holdings in recent months due to the fund’s decision that they were involved in the Israeli occupation beyond the Green Line.

The fund announced that following the review, it decided last week to divest from 11 Israeli companies “as soon as possible,” but did not specify the names of these companies. The fund further states in the announcement that as of today, the holdings have been sold.

In addition, the fund announced that it will terminate its contracts with the financial institutions in Israel that make investments on its behalf according to certain criteria, and will manage the investments in Israel itself from now on.

The extent of the fund’s reduction in financial terms is not yet clear. To date, the fund has invested roughly $2 billion in a range of Israeli companies, from leading banks to technology companies.

“A response to exceptional circumstances”

According to the fund, which manages about $1.9 trillion worldwide and holds about 1.5% of all the world’s traded stocks, the reason for these steps is the war in Gaza. The fund said, “These measures were taken in response to exceptional circumstances. The situation in Gaza is a serious humanitarian crisis. We are invested in companies operating in a country at war, and conditions in the West Bank and Gaza have recently worsened. In response, we will further strengthen our due diligence. The steps we are taking will simplify the management of our investments in this market and reduce the number of companies that we and the Ethics Board monitor.”

The fund will hold a press conference on the subject on Tuesday, when it will likely clarify the list of companies that has been removed from its portfolio.

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Norway’s Minister of Finance Jens Stoltenberg, said he was “pleased with the fund’s decision” – and especially with the speed with which it acted to meet the government’s demands.”

The review was undertaken after a Norwegian NGO alleged links between the Beit Shemesh Engines and the Israeli Air Force’s operations in Gaza and published an opinion piece in the popular newspaper Aftenposten calling for divestment from a host of Israeli companies.

Public opinion in Norway has turned sharply against Israel since the start of the war in Gaza, and labor organizations, as well as major media outlets and NGOs, have called on the government to change the criteria by which the wealth fund invests in Israeli companies.

Today’s announcement outlines a reduction in holdings, but is far from a complete cancellation of all of the fund’s investments in Israel.

Published by Globes, Israel business news – en.globes.co.il – on August 11, 2025.

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