Norway's Wealth Fund: Navigating Ethical Dilemmas in Israeli Investments

Norway's sovereign wealth fund is set to announce adjustments in its Israeli investments amid ethical concerns related to the Gaza conflict and occupation of the West Bank. Finance Minister Jens Stoltenberg ruled out full divestment, emphasizing rapid action on certain issues during an ongoing urgent review prompted by a local political debate.

Norway's $2 trillion sovereign wealth fund is poised to announce changes in how it manages Israeli investments, amid a tense backdrop of conflict in Gaza and ethical considerations in the West Bank. Finance Minister Jens Stoltenberg confirmed that blanket withdrawal is off the table, highlighting targeted measures instead.

After meeting with fund officials twice within three days, Stoltenberg remained tight-lipped about specific measures but dismissed the notion of divestment solely based on nationality, such as pulling out from Israeli firms entirely. The ethical review, sparked by reports of stakes in Israel's Bet Shemesh Engines Ltd, underlines a broader political discourse as elections approach.

The fund, scrutinizing its external portfolio managers, has notably sold stakes in select Israeli firms, yet retains shares in 65 companies valued at $1.95 billion. Amidst calls for divestment from pro-Palestinian groups and parliamentary rejection of a broader disinvestment proposal, Norway navigates complex geopolitical and ethical landscapes in investment decisions.

(With inputs from agencies.)