Norway's sovereign wealth fund profits from Israeli stocks despite Gaza war concerns

Norway’s sovereign wealth fund, the world’s largest, reduced its Israeli exposure from 61 to 29 companies last year, citing the humanitarian crisis in Gaza, yet its remaining stakes generated $2.4 billion in profit in the first half of 2026, a 15.7% increase since the end of 2025. Activists such as Rami Samandar of Norway’s Palestine Committee and lawyer Mads Harlem argue the fund still backs firms like NextVision Stabilized Systems, Israel Aerospace Industries, One Software Technologies and Formula Systems, which they link to military operations and West Bank biometric checkpoints.

Norges Bank Investment Management announced a temporary ethical framework review, stating no new exclusions will be made until the review concludes by October 15. Critics contend the review falls short of Norway’s obligations under international law and urge a complete divestment, comparing the situation to the 2022 freeze on Russian assets. Norway’s finance ministry says an independent ethics council conducts due-diligence, while the Palestine Committee has appealed a dismissed complaint accusing the fund of genocide. The dispute underscores the tension between sovereign investors and human-rights standards during the Gaza war.