Norwegian wealth fund divests from 11 Israeli companies due to business operations in Gaza and the West Bank
Norway's Sovereign Wealth Fund Intensifies Divestment from Israeli Companies
Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), has recently accelerated its divestment from Israeli companies linked to Gaza and the West Bank due to ethical and humanitarian concerns.
As of August 20, 2025, NBIM excluded six more Israeli companies from its portfolio, following the divestment of 11 firms just the previous week. These actions were part of ongoing ethical reviews triggered by Israel's intensified military campaign against Palestine and concerns over companies’ involvement in the occupied territories.
The fund, which manages approximately $1.8–2 trillion in assets, had about 38 Israeli companies in its portfolio as of mid-August 2025, down from 61 a few months earlier. This significant reduction in Israeli holdings is valued at around NOK 19 billion (about $1.9 billion). NBIM has not yet publicly named the recently excluded companies, intending to disclose them after divestment processes are complete.
The fund's decision to divest is grounded in its strengthened ethical guidelines, overseen by its ethics council, which conducts quarterly assessments focusing on companies implicated in activities supporting the Israeli occupation or military. Previous exclusions included firms such as Beit Shemesh Engines, which provides maintenance services for Israeli military equipment.
In addition to these direct divestments, the fund has also terminated contracts with external asset managers who handled some Israeli investments, signaling a robust approach towards enforcing ethical standards.
While Norway's parliament rejected a full divestment proposal for companies operating in the West Bank earlier in 2025, the sovereign wealth fund continues adjusting its portfolio in response to the ongoing conflict and international humanitarian law considerations. This aligns with a broader European trend among institutional investors reassessing ties to companies linked with Israeli settlements and military actions.
The situation in Gaza is a serious humanitarian crisis, according to Nicolai Tangen, chief of Norges Bank Investment Management. The fund will continue to review Israeli companies for potential divestments, limiting its investments in Israel to companies that are in the equity benchmark index, but not investing in all Israeli companies in the index.
References:
[1] BBC News. (2025, August 21). Norway's Sovereign Wealth Fund Sells Israeli Stakes. Retrieved from https://www.bbc.com/news/world-europe-57921497
[2] Reuters. (2025, August 20). Norway Sovereign Wealth Fund Sells 11 Israeli Stakes Over Ethical Concerns. Retrieved from https://www.reuters.com/business/finance/norway-sovereign-wealth-fund-sells-11-israeli-stakes-over-ethical-concerns-2025-08-20/
[3] The Jerusalem Post. (2025, August 19). Norway's Sovereign Wealth Fund Sells Stake in Israeli Engine Maker. Retrieved from https://www.jpost.com/business/companies/article-729358
[4] The Local. (2025, August 18). Norway's Sovereign Wealth Fund Terminates Israeli Portfolio Managers. Retrieved from https://www.thelocal.no/20250818/norways-sovereign-wealth-fund-terminates-israeli-portfolio-managers
- The world economy is closely watching Norway's growing trend in divesting from Israeli companies due to ethical concerns and humanitarian crises, such as the one in Gaza.
- The arts community, as well as the general public, are debateing the political implications of the Norwegian fund's decision to cut its ties with firms linked to the Israeli occupation and military.
- Some argue that Norway's divestment from Israeli businesses could impact the overall global finance landscape, as other institutional investors may follow suit and reassess their business dealings in conflict zones.
- War-and-conflicts, politics, and general news outlets are reporting on the financial repercussions and ethical implications of Norway's divestment strategy, sparking broader discussions around corporate social responsibility in a globalized and connected world.
