Conflict in Gaza: Norway's Sovereign Wealth Fund Dissociates from Holdings in 11 Israeli Corporations
The Norwegian Government Pension Fund Global (GPFG), the world's largest sovereign wealth fund valued at around $2 trillion, has significantly reduced its holdings in Israeli companies since June 2025. The fund, which manages the pension savings of Norwegian citizens, has divested from at least 17 Israeli companies, withdrawing over $400 million in investments.
The accelerated divestment was prompted by an ethics review following escalating violence and humanitarian concerns in Gaza and the West Bank. Norges Bank, which manages the fund, described the situation as a serious humanitarian crisis and cited "unacceptable risk of contribution to serious norm violations" associated with business operations in these occupied territories as a key reason for selling off stakes in companies not part of the benchmark index.
The divestment targets firms linked to the ongoing conflict in Gaza and the Israeli occupation of the West Bank, with companies involved in military supplies, energy, finance, real estate, transportation, and technology affected. Notable companies included Bet Shemesh Engines (supplier of jet engine components to the Israeli military), Paz and Energix (energy and infrastructure), eToro and Priortech (finance and technology), Rami Levy supermarkets, Azorim and Sela Real Estate (retail and real estate), along with El Al Airlines and Delek Motors (transportation).
The move is part of a broader global pattern of asset divestments aimed at pressuring Israel to change its military conduct in Gaza and occupied territories. The decision to sell investments in companies not included in the reference index was made in the context of the Boycott, Divestment, and Sanctions (BDS) movement gaining popularity after months of war in Gaza.
The Norwegian government's decision to accelerate this divestment reflects growing political and public scrutiny amid the Gaza war. Despite some initial government reluctance, citing legal and investment framework constraints, the pressure intensified after investigative reporting and ethical reviews pointed to the fund's indirect involvement in the conflict.
In a statement, the Norwegian Prime Minister asked the country's central bank, Norges Bank, to review the implementation of the fund's management mandate, its investments in Israeli companies, and propose any necessary new measures. Norges Bank Investment Management has stated that it has been paying attention to the issue of companies associated with wars and conflicts since at least 2020.
The monitoring of Israeli companies was intensified in the fall of 2024, and the Norges Bank Investment Management has sold its investments in several Israeli companies. Since 2020, the Norges Bank Investment Management has contacted over 60 companies to raise the issue of companies associated with wars and conflicts, with 39 dialogues concerning the West Bank and Gaza.
This sequence of divestments marks one of the most significant financial consequences to Israel linked directly to the ongoing conflict and occupation from a major global investor. The GPFG's decision to divest from Israeli companies linked to the West Bank occupation and Gaza conflict is a significant step towards pressuring Israel to change its military conduct in these regions.
- The Norwegian Government Pension Fund Global's divestment from Israeli companies is part of a broader global trend, as asset divestments are being used to pressure Israel to change its military conduct in Gaza and occupied territories.
- The decision to sell investments in companies not included in the reference index was made in the context of the Boycott, Divestment, and Sanctions (BDS) movement gaining popularity after months of war in Gaza.
- Norges Bank Investment Management has stated that it has been paying attention to the issue of companies associated with wars and conflicts since at least 2020, and the monitoring of Israeli companies was intensified in the fall of 2024.
