Norway initiates a reassessment of its Israel-related holdings within its sovereign wealth fund
Norway's Sovereign Wealth Fund Reviews Investments in Israeli Companies Amidst Gaza Conflict
In response to growing concerns about links between Norwegian investments and the conflict in Gaza and the occupation of the West Bank, Norway's sovereign wealth fund, valued at approximately $2 trillion, has announced a review of its investments in Israeli companies. Here are some details on the companies involved and the context of the review.
Companies Involved
- Aircraft Manufacturer: A recent report has sparked controversy over Norway's increased investment in a company that manufactures planes used by Israel in the Gaza conflict. However, the specific company has not been named in current reports.
- ICL Group and Israel Corp LTD: Norway's Oil Fund holds a significant stake in ICL Group, which is involved in various industrial activities, and also has investments in Israel Corp LTD, which is ICL's holding company.
- Bank Hapoalim: The fund has a substantial investment in Bank Hapoalim, one of Israel's largest banks. This bank is documented to finance Israeli settlement expansion in the West Bank and the Golan Heights.
- Surveillance and IT Firms:
- Hilan and One Software Technologies: These firms provide support for the Meitar system, a biometric identification platform used at Israeli military checkpoints in the West Bank. This system aids in the real-time tracking of Palestinian movement.
Context of the Review
The review is largely symbolic but reflects growing international pressure on Israel and strategic considerations for Norway's government, especially ahead of elections. The value of Israeli assets in Norway's fund is relatively small, accounting for about 0.1% of its total portfolio.
Despite potential symbolic impact, divesting from these companies would have little financial effect on the fund or the companies involved. The Boycott, Divestment, and Sanctions (BDS) campaign, which has gained traction globally, would consider divestment by Norway's sovereign wealth fund a significant victory, even if it does not lead to total divestment.
The review of NBIM's Israeli holdings will be conducted by the central bank and the Ethics Council. Israel also faces a genocide case at the International Court of Justice (ICJ) for its war on Gaza.
According to the Aftenposten daily, the fund has built a stake in an Israeli jet engine group, Bet Shemesh Engines Ltd (BSEL), which provides services to Israel's armed forces. The Israeli army has pursued a brutal offensive on Gaza since Oct. 7, 2023, causing devastation and bringing the enclave to the verge of famine.
At the end of 2024, the fund held shares in 65 Israeli companies, valued at $1.95 billion. The fund's investment in BSEL is worth $15.2 million, according to the latest available NBIM records.
Norway's parliament rejected a proposal for the sovereign wealth fund to divest from all companies with activities in the occupied Palestinian territories in June. However, the recent review indicates a shift in Norway's stance towards these investments.
Norwegian Prime Minister Jonas Gahr Stoere expressed concern about the fund's investment in BSEL. The ethics council of the Norwegian sovereign wealth fund is also reviewing whether to recommend divesting holdings in five banks. In the last year, the fund has sold its stakes in an Israeli energy company and a telecoms group.
As the review continues, it remains to be seen whether Norway will take further action to distance itself from companies linked to the conflict in Gaza and the occupation of the West Bank. Almost half of the deaths in the Israeli military campaign in Gaza were women and children. Nearly 61,000 Palestinians have been killed in the Israeli military campaign in Gaza.
- Amidst international pressure and strategic considerations, Norway's Sovereign Wealth Fund, worth approximately $2 trillion, announced a review of its investments in Israeli companies, such as Bank Hapoalim, which finances Israeli settlement expansion, and Aircraft Manufacturer, whose planes are used in the Gaza conflict.
- The review covers Norway's Oil Fund's stake in ICL Group and Israel Corp LTD, companies involved in industrial activities, and firms like Hilan and One Software Technologies, which supply support for the Meitar system used at Israeli military checkpoints in the West Bank.
- In response to growing concerns, the Norwegian Prime Minister, Jonas Gahr Stoere, expressed concern about the fund's investment in an Israeli jet engine group, Bet Shemesh Engines Ltd (BSEL), which provides services to Israel's armed forces.
- Israel faces a genocide case at the International Court of Justice (ICJ) for its war on Gaza, and the recent review of NBIM's Israeli holdings could lead to further divestment from companies like BSEL, even as the boycott, divestment, and sanctions (BDS) campaign would consider any divestment as a significant victory.
- The review also encompasses the ethical implications of investments in Israeli banks, with the ethics council of the Norwegian Sovereign Wealth Fund assessing whether to recommend divestment in five banks, as the death toll rises in the ongoing Israeli military campaign in Gaza, with nearly 61,000 Palestinians killed to date.
