Norway’s Wealth Fund -
Poor Leadership
Norway’s $2 trillion sovereign wealth fund, the largest in the world, is facing a political storm. After years of public protests, a UN warning, and a joint demand from 48 organizations, the debate over the Oil Fund’s investments in Israel finally reached the national agenda when Aftenposten exposed its stake in Bet Shemesh Engines Holdings.
August 5, 2025 | INTERNATIONAL POLITICS
Image by AI/S&P
It is hard to imagine that all the politicians in the Labour Party are sitting quietly now, even if we do not see open unrest. The Norwegian population has over an extended period voiced protests against Norway’s sovereign wealth fund investments in Israel. Criticism has also been raised persistently by smaller political parties and alternative media outlets, while the major editorial media in Norway have notably remained silent on the matter.
In May, these concerns were reinforced by a formal protest from the United Nations, expressed in a letter by UN Special Rapporteur Francesca Albanese on human rights in the occupied Palestinian territories, and by a joint protest from 48 Norwegian organizations.
Yesterday, on 4 August, the newspaper Aftenposten finally reported on the investments in Bet Shemesh Engines Holdings, a company that services fighter jets, and the issue at last reached the national agenda.
In response, Prime Minister Jonas Gahr Støre and Finance Minister Jens Stoltenberg (former Prime Minister and NATO Secretary General) claimed that they had been unaware of these investments and promised to review the case. Yet already today it has emerged that an expert group had warned the Norwegian cabinet before the summer break, making the scandal complete.
That it has come to this is no surprise; it was the final straw. Støre and Stoltenberg have this year acted like autocrats over both the press, the opposition, and the public. And perhaps even over their own party members — discontent may have been present for a long time.
The scandal shows that the Norwegian cabinet has failed on several levels:
As top leaders of Norway, when they have not had control over the fund’s investments; as national leaders, when they have not listened to the majority of the population who consider Norway’s Israel investments problematic; and finally as diplomats, in their handling of the war between Palestine and Israel.
The first two points are self-explanatory; the last can be examined more closely — let us also include Foreign Minister Espen Barth Eide. The three claim that they recognize Palestine as a state, while at the same time claiming that diplomatic relations with Israel serve the case best. The first statement appears inconsistent, as words and actions do not align; the second meaningless, when Israel rejects diplomacy with Norway.
When it comes to international diplomacy concerning Israel, Norway has very little ability to influence other countries with larger Jewish populations — which is practically all. Let us be realistic: it is frankly a little embarrassing that our leaders hold such high opinions of their own diplomatic abilities. They do not even have control of the sovereign wealth fund and its ethical guidelines and ethics committee.
The only way Norway can exert influence is by leading by example and withdrawing the fund’s investments from Israel. And Norway can certainly afford to withdraw, as we hold the world’s largest sovereign wealth fund.
Timeline of Events
5 May 2025
48 Norwegian organizations, including trade unions and civil society groups, call on the government to divest the sovereign wealth fund from companies linked to Israel’s occupation.20 May 2025
UN Special Rapporteur Francesca Albanese sends a formal letter to Norway’s finance and foreign ministers, warning about investments tied to violations of international law.30 May 2025
The Norwegian cabinet responds, defending the fund’s ethical guidelines while acknowledging international concern.4 August 2025
Aftenpostenreports on the Oil Fund’s holdings in Bet Shemesh Engines Holdings, which services fighter jets used in the Gaza war. The issue reaches the national agenda.5 August 2025
Prime Minister Jonas Gahr Støre and Finance Minister Jens Stoltenberg claim they were unaware of the investments and promise a review. Reuters and the Financial Times confirm the cabinet’s response.6 August 2025
Reuters reports that the Ethics Council admits it should have scrutinized the Israeli investment earlier.13 May 2025 (context)
Reuters reiterates that Norway’s sovereign wealth fund is the world’s largest, valued at over $1.8 trillion.
SOURCES
Reuters
Norway fund urged by union to divest from companies aiding Israel in occupied territoriesUN Special Rapporteur Francesca Albanese
Letter to the Minister of Foreign Affairs and Minister of Finance, Norway (PDF)Government of Norway
Response to the UN Special Rapporteur on the situation of human rights in the Palestinian territoryPanorama News / NTB
Poll: Clear majority demands that Norway’s Oil Fund avoids human rights violations (Norwegian source)Reuters
Norway to review sovereign wealth fund's Israel investmentsFinancial Times
Norway to review $2tn oil fund’s investments in Israeli companiesReuters
Norway fund’s ethics watchdog acknowledges shortcoming in scrutiny of Israeli companiesNBIM (Norges Bank Investment Management)
Official site of the Government Pension Fund Global (Oil Fund)Reuters
How should Norway spend its cash? Solve global problems, says citizen panel
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