Stockholm (NordSIP) – In light of the conflict between Israel and Hamas in the West Bank and Gaza, Norway’s Finance Minister requested that Norges Bank Investment Management (NBIM), which manages the country’s US$2‑trillion sovereign wealth fund, review its holdings in Israeli companies. Following the request, NBIM has announced the immediate divestment of its holdings in 11 Israeli companies.
Beyond this decision, NBIM also terminated contracts with external managers in Israel, deciding intead to move Israeli investments inhouse. Finally, NBIM’s investment in Israeli companies will be limited to those included in its equity benchmark index. However, it will not invest in all Israeli companies in the index. At the end of the first half of the year, NBIM was invested in 61 Israeli companies.
Reviewing NBIM’s Exposure to Israel
“These measures were taken in response to extraordinary circumstances. 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. The measures we are taking will simplify the management of our investments in this market and reduce the number of companies that we and the Council on Ethics monitor,” says Nicolai Tangen, CEO of Norges Bank Investment Management.
This move follows intensified scrutiny after reports revealed NBIM’s investments in Bet Shemesh Engines Holdings, a company supplying components for Israeli fighter jets—an exposure that triggered sharp political backlash. Norwegian Finance Minister Jens Stoltenberg expressed relief that “the fund has acted quickly,” while observers and activists criticized the limited scale of the divestments, calling for broader disengagement.
NBIM is to finalise its response to the Finance Ministry’s request for proposing additional measures by August 20 deadline.
NBIM, Conflict and Gaza
NBIM monitors companies’ risk management related to conflict zones and respect for human rights. Since 2020, the fund has been in contact with more than 60 companies to raise this issue, including 39 dialogues related to the West Bank and Gaza. In the autumn of 2024, we further intensified the monitoring of our investments in Israeli companies.
NBIM has also expanded its information-sharing with the Council on Ethics on Israeli companies, in line with the ethical guidelines.
