Norway wealth fund faces outcry over Israeli investments as Gaza war intensifies

Norway’s $2 trillion sovereign wealth fund is facing a political storm following revelations of increased investments in Israeli companies with possible links to the ongoing war in Gaza. This controversy comes as public outrage mounts over the fund’s exposure to businesses accused of supporting military operations in the conflict-stricken region.

Norwegian Prime Minister Jonas Gahr Støre has ordered an urgent review of the fund’s holdings, declaring it “entirely clear” the nation should not support businesses potentially violating international law. The review seeks to ensure that the world’s largest sovereign wealth fund withdraws from any firm connected to the occupation of the West Bank or Israel’s military actions in Gaza.

Pressure erupted after it emerged that the fund had increased its stake in Bet Shemesh Engines, an Israeli manufacturer of jet engine parts, by more than fourfold between 2023 and 2024, reaching $15.2 million. This company is reported to provide maintenance for Israeli aircraft used in strikes on Gaza, and boasts a longstanding relationship with the Israel Air Force. The Green Party labelled the investments “disgusting, totally unacceptable and unforgivable”, while calling for the resignation of Nikolai Tangen, chief executive of the fund.

Tangen acknowledged the investments were managed through external partners and insisted Bet Shemesh Engines was not on any exclusion list. He stated, “We will have to review it again and make a new assessment,” and recognised the deep distress felt across Norwegian society due to the images of suffering emerging from Gaza.

Norway’s sovereign wealth fund, which owns around 1.5 per cent of all listed companies globally, held shares in 65 Israeli firms worth $2.1 billion at the end of last year—an increase of 45 per cent since December 2023. This growth came despite increased scrutiny over the humanitarian disaster in Gaza, described by UN experts as a “catastrophe of epic proportions.” Norway formally recognised Palestine as a state in May last year.

The fund also holds a $16.2 million stake in Next Vision Stabilized Systems, a provider of advanced camera equipment reportedly used on Israeli drones, and a substantial position in cybersecurity giant Checkpoint Software, which has faced allegations of military collaboration. In addition, the fund holds shares in Zim, a shipping company accused by NGOs of transporting munitions for Israel.

This issue has ignited a political debate ahead of Norway’s upcoming general election. The Red Party now demands an emergency parliamentary session to address the fund’s investments. The controversy has raised fundamental questions about ethical investing, parliamentary accountability, and the role of national wealth in global crises.