Israel-Palestine Conflict: Norway's Sovereign Wealth Fund selling off shares in 11 Israeli companies due to Gaza war, considering further divestments.
In recent times, several European financial institutions have been re-evaluating their ties with Israeli companies due to the ongoing conflict in Gaza. Among these, Norway's sovereign wealth fund, the world's largest at $2.2 trillion, has taken a significant step by excluding 23 Israeli companies from its portfolio since June 30, 2025.
The fund, managed by Norges Bank Investment Management, has reduced its holdings from 61 Israeli companies worth about 23 billion Norwegian crowns (~$2.3 billion) to 38 companies valued at 19 billion crowns (~$1.9 billion). This decision was based on concerns about the humanitarian crisis in Gaza and ethical considerations, as stated in a letter from Norway’s Finance Ministry, citing the deteriorating situation in Gaza and the West Bank[1][3].
The fund has specifically divested stakes in 11 companies, including some arms manufacturers, technology giants, heavy machinery companies, and financial institutions, for their complicity in Israel's repression of Palestinians and sustaining Israeli expansions onto occupied land[7]. The fund has also sold its stakes in an Israeli energy company and a telecommunications group in the past year[8].
The Norwegian government initiated a review after it was revealed that the fund had a stake in Bet Shemesh Engines Ltd, which provides parts to Israeli fighter jets deployed in the war on Gaza[9]. The CEO of Norges Bank Investment Management, Nicolai Tangen, acknowledged that the fund is invested in companies that operate in a country at war[10].
Other countries, such as Australia, Britain, Canada, New Zealand, and members of the G7, have taken sanctions or pressured financial interactions linked to Israeli officials and policies impacting Palestinians[2]. However, explicit divestments or sanctions by other European financial firms beyond Norway’s fund have not been detailed in the provided search results.
At the EU policy level, there have been failed attempts by EU diplomats to partially suspend Israel from the Horizon Europe research fund due to the Gaza war, showing political sensitivities but stopping short of explicit financial sanctions against Israeli companies[4]. Some European Parliament members and advocacy groups have called for suspending EU-Israel trade agreements for human rights abuses, but this has not yet translated into widespread financial cutbacks[5].
The United Nations special rapporteur on the occupied Palestinian territory, Francesca Albanese, has called for countries to cut off all trade and financial ties with Israel, including a full arms embargo. Albanese's report accused Israel of having an "economy of genocide" and detailed "the corporate machinery sustaining Israel's settler-colonial project of displacement and replacement of the Palestinians in the occupied territory" in a report titled From Economy of Occupation to Economy of Genocide[6].
References: 1. Norway's Sovereign Wealth Fund Dumps Israeli Stakes Amid Gaza Crisis 2. European Financial Institutions Cut Ties with Israeli Companies Amid Gaza Crisis 3. Norway's Sovereign Wealth Fund Divests from Israeli Companies 4. EU Fails to Suspend Israel from Horizon Europe Research Fund Amid Gaza War 5. Calls for Suspending EU-Israel Trade Agreements Over Human Rights Abuses 6. United Nations Report Accuses Israel of Having an "Economy of Genocide" 7. Norway's Sovereign Wealth Fund Divests from Israeli Companies Citing Ethical Concerns 8. Norway's Largest Pension Fund Cuts Ties with Israeli Companies 9. Norway's Government Initiates Review after Sovereign Wealth Fund Investment in Israeli Arms Manufacturer 10. Norges Bank Investment Management CEO Acknowledges Investments in Companies Operating in War Zones
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