Norway’s sovereign wealth fund, the world’s largest with total assets exceeding US$ 1.6 trillion, announced the divestment of several Israeli companies, an unprecedented move that reflects a shift in the fund’s policies toward Israel.
According to the fund’s official website, an interactive map shows its investments in each country, and until recently, the fund’s investments in Israel were substantial, with data revealing that it had pumped more than 16.2 billion Norwegian kroner (approximately $1.6 billion) into the Israeli market, compared to only 973 million Norwegian kroner (approximately $96 million) into Egypt.
Eleven Israeli companies have been directly impacted by the Norwegian sovereign wealth fund’s decision, particularly Bet Shemesh Engines Holdings, a company operating in the aerospace and defense sector and listed on the Tel Aviv Stock Exchange.
Despite the announcement of the withdrawal, the company’s stock closed up +3.40 percent, according to Market Screener, indicating that the market has yet to fully absorb the impact of the decision, or that local investors have rushed to fill the void.
Other prominent companies impacted by the Norwegian Wealth Fund’s decision include:
- Elbit Systems, a defense industry and technology company.
- Ashtrom Group, a construction and real estate development company.
- Delek Group, one of Israel’s largest energy companies.
- Shuversal, Israel’s largest retail chain.
- Veronique International (Electra), an infrastructure and contracting company.
Mounting European pressure on Israel
Israel has been facing significant European pressure recently, with France and Britain threatening to announce their recognition of a Palestinian state during the upcoming UN meetings in September.
Meanwhile, Germany announced a halt towards invest in any Israeli companies involved in the war on the Gaza Strip.
