Norway Wealth Fund Sells Stakes in 11 Israeli Firms Over Gaza Crisis/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Norway’s $1.6 trillion sovereign wealth fund has sold its stakes in 11 Israeli companies. The decision follows the worsening humanitarian crisis in Gaza and aims to streamline investment oversight. The fund will also terminate contracts with external Israeli investment managers.
Norway Oil Fund Divestment Quick Looks
- Fund Size: $1.6 trillion, sourced from Norway’s oil and gas revenues.
- Action: Sold shares in 11 Israeli companies last week.
- Reason: “Serious humanitarian crisis” in Gaza.
- Scope: Fund had stakes in 61 Israeli firms as of mid-2025.
- Details: Companies sold were not in Norway’s Finance Ministry benchmark index.
- Management Change: All Israeli investments will now be managed in-house.
- Contracts: Terminating agreements with external Israeli fund managers.
- CEO Statement: Nicolai Tangen says move simplifies oversight and reduces ethics monitoring burden.
- Background: Fund intensified scrutiny of Israeli holdings in late 2024, selling several stakes.
- Global Reach: Fund owns ~1.5% of all global listed shares in ~9,000 companies.
Norway Wealth Fund Sells Stakes in 11 Israeli Firms Over Gaza Crisis
Deep Look
Norway’s massive sovereign wealth vehicle, the Government Pension Fund Global — commonly called the Oil Fund — has divested from 11 Israeli companies, citing the worsening humanitarian situation in Gaza.
The $1.6 trillion fund, managed by Norges Bank Investment Management (NBIM), confirmed Monday that the sales were completed over recent days. CEO Nicolai Tangen said the decision was made last week to exit positions in firms outside the Norwegian Finance Ministry’s equity benchmark index.
“These measures were taken in response to extraordinary circumstances,” Tangen said. “The situation in Gaza is a serious humanitarian crisis. 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.”
Strategic Shift in Management
Alongside the divestment, NBIM announced that all remaining Israeli company holdings previously managed by external partners will be brought in-house. Contracts with external managers in Israel are being terminated. Tangen explained that centralizing management would simplify oversight and reduce the number of companies that the fund’s Council on Ethics must monitor for compliance with its investment guidelines.
While NBIM did not disclose the names of the 11 companies sold, it emphasized that this action follows intensified scrutiny of Israeli holdings that began in late 2024. That earlier review led to the sale of shares in “several” Israeli firms deemed inconsistent with the fund’s ethical standards.
Ethics and Global Reach
The Oil Fund, built on profits from Norway’s offshore oil and gas production, is one of the world’s largest institutional investors. It holds stakes in about 9,000 companies worldwide, amounting to roughly 1.5% of all publicly listed shares globally.
Norway’s Finance Ministry sets the fund’s benchmark index and overall investment mandate, but NBIM has discretion to manage holdings within that framework. The Council on Ethics advises on exclusions or observations of companies based on criteria such as human rights violations, environmental harm, and corruption.
Context: Gaza and Market Oversight
The divestment comes amid an escalating humanitarian crisis in Gaza, where months of conflict have led to severe civilian hardship and international concern. For Norway’s fund, which has long portrayed itself as a leader in ethical investing, the move signals a proactive stance in volatile geopolitical situations.
By focusing only on benchmark-index companies in Israel and bringing all management in-house, NBIM says it will improve its ability to monitor compliance, assess risk, and uphold Norway’s ethical investment principles.
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