Norwegian Government to Review State Fund Investments in Israeli Companies

The Norwegian government has announced plans to investigate the national sovereign wealth fund's investments in Israeli companies that may be contributing to the ongoing conflict in Gaza or the occupation of the West Bank. Prime Minister Jonas Gahr Støre expressed his concerns about this issue in a recent interview with the state broadcaster NRK.

This decision comes in response to a report from the Norwegian newspaper Aftenposten, which revealed that the sovereign wealth fund holds shares in Bet Shemesh Engines (BSEL), an Israeli manufacturer involved with the Israeli military, particularly in the maintenance of combat aircraft. As of now, there has been no response from BSEL regarding the report.

In light of the Aftenposten findings and the current security situation in Gaza and the West Bank, Finance Minister Jens Stoltenberg stated that the Norwegian central bank will initiate a review of the fund's holdings in BSEL.

According to recent data, Norges Bank Investment Management (NBIM), which manages Norway's sovereign wealth fund, acquired a 1.3 percent stake in BSEL in 2023. This stake was increased to 2.09 percent by the end of 2024. Nicolai Tangen, the head of NBIM, noted that BSEL did not appear on any lists recommending companies to be excluded from the sovereign fund's investments.

The Norwegian sovereign wealth fund has investments in approximately 8,700 companies globally, with 65 of those being Israeli firms as of late 2024.

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