Key Takeaways
- • Norway's sovereign wealth fund, the world's largest, cut its Israeli holdings from 61 to 29 companies last year, citing "the serious humanitarian crisis" in Gaza, according to Al Jazeera.
- • Returns from the remaining Israeli holdings reached $2.4bn in the first half of 2026, a rise of 15.7 percent since the end of 2025, though the fund has made no new investments in Israeli firms since the cuts.
- • The value of the stake in Israeli drone-camera company NextVision Stabilized Systems rose to $25.9m from $21m in 2025, and the company supplies equipment to state-owned Israel Aerospace Industries.
- • The Norges Bank Investment Management ethical framework is under review, with temporary guidelines barring new observation or exclusion decisions until a new framework is in place; the review is expected to conclude by October 15.
- • Campaign groups, including Norway's Palestine Committee, are appealing a dismissed formal complaint alleging serious crimes including genocide against Norges Bank, the fund and its governing authority.
Summary
The value of Norway's sovereign wealth fund's investments in Israeli companies has risen, drawing ethical criticism from campaign groups and charities as the war in Gaza continues, according to Al Jazeera. The fund cut its Israeli holdings from 61 to 29 companies last year, citing the humanitarian crisis in Gaza. Despite making no new investments in Israeli firms since, returns from the remaining holdings reached $2.4bn in the first half of 2026, up 15.7 percent since the end of 2025. A separate report from CommBank states the fund earned $A350 billion in 2025, though that figure concerns the fund overall rather than its Israeli exposure.
The fund's largest concerns involve specific holdings. The stake in NextVision Stabilized Systems, an Israeli drone-camera maker whose customer Israel Aerospace Industries is a state-owned defence contractor, rose to $25.9m from $21m in 2025. The fund also holds stakes in One Software Technologies, which according to research group Who Profits provides maintenance for a biometric identification system at West Bank checkpoints, and Formula Systems, which provides software services to the Israeli military through its subsidiary TSG.
Critics include Rami Samandar, head of Norway's Palestine Committee, who said the fund "represents enormous economic and political power" and argued it is failing to comply with its obligations under international law. Mads Harlem of Save the Children Norway said the fund should divest from NextVision until it implements adequate measures to prevent its products contributing to violations of international humanitarian law. Pal Nygaard, a professor at BI Norwegian Business School, criticised the continued NextVision holding.
Norges Bank Investment Management said the fund's ethical framework is under review. Per the finance ministry, temporary ethical guidelines and mandate changes apply until a new framework is in place, and during this period Norges Bank may not decide on observation or exclusion of companies. The fund said it is invested in line with a ministry-set benchmark index that includes the Israeli market. The ministry stated that investments in conflict areas require enhanced due diligence. The review is expected to conclude by October 15.
The Palestine Committee filed a formal complaint in January accusing Norges Bank, the fund and its governing authority of serious crimes including genocide. The case was dismissed and the committee is appealing. Norway froze the fund's Russian investments after Russia's 2022 invasion of Ukraine, and Samandar called for similar treatment of Israel. Norway recognised the Palestinian state in 2024.
The fund's largest concerns involve specific holdings. The stake in NextVision Stabilized Systems, an Israeli drone-camera maker whose customer Israel Aerospace Industries is a state-owned defence contractor, rose to $25.9m from $21m in 2025. The fund also holds stakes in One Software Technologies, which according to research group Who Profits provides maintenance for a biometric identification system at West Bank checkpoints, and Formula Systems, which provides software services to the Israeli military through its subsidiary TSG.
Critics include Rami Samandar, head of Norway's Palestine Committee, who said the fund "represents enormous economic and political power" and argued it is failing to comply with its obligations under international law. Mads Harlem of Save the Children Norway said the fund should divest from NextVision until it implements adequate measures to prevent its products contributing to violations of international humanitarian law. Pal Nygaard, a professor at BI Norwegian Business School, criticised the continued NextVision holding.
Norges Bank Investment Management said the fund's ethical framework is under review. Per the finance ministry, temporary ethical guidelines and mandate changes apply until a new framework is in place, and during this period Norges Bank may not decide on observation or exclusion of companies. The fund said it is invested in line with a ministry-set benchmark index that includes the Israeli market. The ministry stated that investments in conflict areas require enhanced due diligence. The review is expected to conclude by October 15.
The Palestine Committee filed a formal complaint in January accusing Norges Bank, the fund and its governing authority of serious crimes including genocide. The case was dismissed and the committee is appealing. Norway froze the fund's Russian investments after Russia's 2022 invasion of Ukraine, and Samandar called for similar treatment of Israel. Norway recognised the Palestinian state in 2024.
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