Norway’s $2 trillion sovereign wealth fund has decided to end contracts with asset managers responsible for its Israeli holdings and has sold parts of its investments in Israel.
This move comes as a response to the ongoing conflict in Gaza and the West Bank.
Last week, the fund began a rapid review after news surfaced that it had acquired shares in an Israeli jet engine company linked to the military.
This company provides maintenance services for fighter jets used by Israel’s armed forces.
Following this discovery, the fund took action to reduce its exposure to companies connected to military activities in the region.
The Norwegian fund’s decision reflects growing concerns over ethical investment practices amid the escalating violence between Israel and Palestinian territories.
The fund manages one of the world’s largest sovereign wealth portfolios, making its divestment from Israeli military-related firms a notable development in international finance and ethics.
This is part of a broader trend of investors reconsidering holdings tied to conflict zones or controversial industries.
Norway’s fund has a history of adjusting its investments based on ethical considerations, and this recent move aligns with its commitment to responsible investment principles.
The sale of parts of its Israeli portfolio follows internal pressure and public debate about the role of large institutional investors in supporting companies involved in conflict areas.
The decision also signals possible future shifts in investment strategies as geopolitical tensions continue to influence global markets.
Norway’s sovereign wealth fund remains one of the most influential institutional investors worldwide, and its choices often influence other global investors.
The recent move to exit certain Israeli investments may prompt other funds to reassess their positions on companies linked to military conflicts.