Norway’s sovereign wealth fund profits from Israeli holdings amid genocide

What Happened

Norway’s sovereign wealth fund, managed by Norges Bank, reported a 15.7 percent increase in the value of its remaining Israeli holdings during the first half of 2026, reaching $2.4bn. The fund currently maintains stakes in 29 Israeli companies, down from 61 in 2025. Among these holdings, the value of the fund's investment in NextVision Stabilized Systems rose to $25.9m from $21m in 2025. Critics, including the Norway Palestine Committee and Save the Children Norway, allege these investments support companies linked to the Israeli military and the occupation of the West Bank, such as One Software Technologies and Formula Systems. Norges Bank Investment Management stated it is operating under temporary ethical guidelines set by the Norwegian Ministry of Finance, which currently restrict the exclusion of companies while a new framework is under review.

Key Actors

Why It Matters

The controversy highlights the tension between Norway's diplomatic stance—which includes the 2024 recognition of a Palestinian state—and its financial exposure to the Israeli economy. The situation underscores broader debates regarding the responsibility of state-owned investment vehicles to conduct human rights due diligence in conflict zones, particularly when those investments are linked to military infrastructure or occupation-related services.

Watch For

The conclusion of the Norges Bank ethical framework review, which is scheduled for October 15, 2026. Additionally, monitor the appeal process regarding the Norway Palestine Committee's formal complaint against the fund.