Norway’s sovereign wealth fund has sold its shares in 11 Israeli companies, citing the “serious humanitarian crisis” in Gaza as the reason for the move, reports The Associated Press.
The announcement was made Monday by Norges Bank Investment Management, which oversees the fund known globally as the Oil Fund.
The fund, which channels Norway’s oil and gas revenues into global investments, confirmed that as of the end of the first half of 2025, it held stakes in 61 Israeli companies. Last week, it decided to divest from 11 firms that fall outside the Norwegian Finance Ministry’s equity benchmark index. The sales were finalized over the past few days.
The fund did not disclose the names of the affected companies.
In addition to the divestment, the Oil Fund is terminating contracts with external managers operating in Israel and will bring all Israeli investments under direct management.
“These measures were taken in response to extraordinary circumstances. The situation in Gaza is a serious humanitarian crisis,” said Nicolai Tangen, CEO of Norges Bank Investment Management, as quoted by AP. “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 the restructuring “will simplify the management of our investments in this market” and reduce the number of companies monitored by the fund’s ethics council.
The fund’s management also revealed that it began intensifying scrutiny of Israeli investments last fall, resulting in the sale of shares in “several” companies.
Monday’s announcement comes several days after Norway's Finance Minister Jens Stoltenberg confirmed that the country's $2 trillion sovereign wealth fund will make adjustments to its handling of Israeli investments.
The review was prompted by reports indicating that the fund had invested in Bet Shemesh Engines Ltd., an Israeli jet engine company that provides maintenance services to Israel's armed forces, including its fighter jets.
Despite calls from some parliamentarians, Norway’s legislature voted in June against a proposal to divest from all companies operating in what it refers to as “occupied Palestinian territories.”
The fund, guided by ethical principles set by the Norwegian parliament, has already blacklisted 11 companies for assisting Israel's "occupation," most recently Israeli petrol station chain Paz and Israeli telecommunications company Bezeq.
Norway, together with Ireland and Spain announced last May that they intended to recognize the “State of Palestine”.
The announcement came after Ireland, Spain, Slovenia and Malta announced that they would jointly work toward the recognition of a Palestinian state, arguing a two-state solution is essential for lasting peace in the region.