Rizky Amelia
Norway’s sovereign wealth fund is confronting renewed scrutiny from human rights organizations and legal experts after reporting substantial financial gains from its remaining holdings in Israeli companies amid the ongoing war in Gaza.
Despite paring down its portfolio in Israel late last year, the fund saw the total value of its Israeli investments climb to $2.4 billion in the first half of 2026. This performance represents a 15.7 percent increase in returns compared to valuations recorded at the end of 2025.
Recognized as the world’s largest sovereign wealth fund, the institution had previously reduced its Israeli corporate positions from 61 companies to 29 in 2025, pointing to the severe humanitarian crisis in Gaza. The fund has not acquired stakes in any new Israeli enterprises since implementing those initial reductions.
The state-owned investment vehicle was established in the 1990s to channel surplus capital derived from Norway’s oil and natural gas production. Managed under the direction of the country's central bank, Norges Bank, the massive asset pool exercises considerable economic influence across international financial markets.
Rami Samandar, the leader of Norway’s Palestine Committee, criticized the fund's ongoing financial links, emphasizing the immense economic and political responsibility tied to Norwegian public money. He argued that retaining capital in businesses that back military aggression and sustain occupation infrastructure violates Norway's duties under international law.
Particular attention has fallen on defense-linked technology holdings within the portfolio. The valuation of the fund’s stake in NextVision Stabilized Systems, a producer of micro-stabilized drone cameras, climbed from $21 million in 2025 to $25.9 million in the first six months of 2026. NextVision supplies camera equipment to Israel Aerospace Industries, a state-owned aerospace and defense contractor that equips the Israeli armed forces.
Mads Harlem, an international legal specialist at Save the Children Norway, stated that Norges Bank must divest from NextVision unless the company demonstrates verified measures preventing its products from facilitating violations of international humanitarian law.
Other commercial positions have also sparked ethical challenges from independent monitoring groups. According to Who Profits, an organization tracking commercial ties to the occupation, One Software Technologies provides operational support for biometric identity systems used by the Israeli Civil Administration at West Bank checkpoints. Similarly, the fund holds investments in Formula Systems, which supplies military software through its subsidiary TSG.
Advocacy groups have also pointed to corporate ties involving natural resources and settlement infrastructure. The fund holds a 1.65 percent equity stake in ICL Group, an enterprise cited by the organization Historians for Palestine for mining operations linked to the displacement of Palestinian Bedouins in the Naqab Desert, as well as supplying fertilizers to settlements.
Pal Nygaard, a professor at BI Norwegian Business School and member of Historians for Palestine, expressed deep concern over the fund's decision to maintain its position in NextVision. Nygaard argued that documented corporate contributions to international law violations should warrant a comprehensive exclusion of Israeli companies.
Addressing the controversy, a spokesperson for Norges Bank Investment Management stated that the fund operates strictly in accordance with investment mandates set by the Norwegian Ministry of Finance. The ministry defines a broad benchmark index to direct capital allocation across international markets, and the Israeli market currently remains part of that index.
The spokesperson further noted that the finance ministry has enacted temporary operational guidelines while the fund’s broader ethical framework remains under review. During this interim period, which is scheduled to conclude by October 15, Norges Bank is barred from issuing new determinations regarding the observation or exclusion of specific companies.
Legal specialists have expressed concern over the procedural freeze, with Harlem warning that the hiatus impedes Norway’s ability to prevent serious violations of international standards. He cautioned that continuing these investments risks signaling to global financial markets that institutional investors can bypass conflict-related human rights due diligence.
Activists and civil society leaders have highlighted what they describe as a double standard, citing the fund's immediate freeze on Russian assets following the 2022 invasion of Ukraine. Samandar urged Norwegian authorities to adopt an equally decisive stance regarding firms operating in Israel.
The financial controversy stands in contrast to Norway's diplomatic positions, including its formal recognition of a Palestinian state in 2024 and its continued support for a two-state solution. The disparity has fueled public demonstrations in Oslo, where pro-Palestinian and environmental activists previously converged to blockade the central bank's headquarters.
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