Norway’s wealth fund pulls Israeli companies from its portfolio amid genocide on Gaza

(MENAFN) Norges Bank Investment Management, the world’s largest sovereign wealth fund, has continued to reduce its holdings in Israeli companies, removing 17 firms from its portfolio on Tuesday.

The fund, valued at $2.2 trillion, announced on Monday that 11 Israeli companies had already been divested as of June 30. A subsequent update indicated that 44 Israeli firms remain in the fund, with 11 of the recent divestments linked to the prior week’s decision and six others resulting from routine portfolio management choices.

“These measures were taken in response to extraordinary circumstances. The situation in Gaza is a serious humanitarian crisis," CEO Nicolai Tangen said. "We are invested in companies that operate 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."

Tangen added that these steps are intended to simplify the management of investments in Israel and reduce the number of companies monitored by the fund and its Council on Ethics. The fund also noted that it has maintained dialogue with numerous firms operating in conflict zones since 2020, with 39 conversations focused specifically on the West Bank and Gaza. “In the autumn of 2024, we further intensified the monitoring of our investments in Israeli companies. As a result, we have sold our investments in several Israeli companies,” the fund stated.

As of the end of June, the fund’s Israeli portfolio was valued at $2.24 billion across 61 companies. Following the latest divestments, the 17 removed firms—Amos Luzon, Azorim, Bet Shemesh, Delek Automotive, El Israel Airlines, Energix, Etoro Group, Max Stock, Meshulam Levinstein, Perion Network, Priortech, Rami Levy Chain Stores, Reit, Retailors, Scope Metals, Sella Capital, and Turpaz Industries—totaled $143.3 million. The remaining Israeli investments now amount to $2.09 billion.

The fund confirmed that all Israeli holdings not included in its equity benchmark index will be sold as soon as possible, and that externally managed investments in Israeli companies will be transferred to internal management. Tangen also indicated plans to divest from additional Israeli firms.

Norwegian Prime Minister Jonas Gahr Store defended the fund’s actions during a televised party leaders’ debate, emphasizing that he does not support a complete withdrawal from Israel. Socialist Left Party leader Kirsti Bergsto called for a full divestment, declaring, “Do not invest in a genocide. Withdraw your investments,” and added, “The genocide must stop.” Store countered that a total exit was not appropriate, stating, “I do not think it is right for the fund. What we are doing, withdrawing the fund through a political decision.”

The moves come as Israel faces mounting international criticism over its genocide in Gaza, which has reportedly resulted in nearly 61,600 deaths since October 2023. Last November, the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant for alleged war crimes and crimes against humanity. Israel also faces a genocide case at the International Court of Justice regarding its actions in the enclave.

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