There are concerns in Israel about the possibility of Norway’s sovereign wealth fund withdrawing its investments in Israel. The fund – the largest in the world in terms of the size of assets – has previously taken decisions over the past years to withdraw its investments from companies linked to Israeli settlements in the West Bank.
The fund’s ethics oversight body is already investigating whether Israeli companies, in which the fund owns shares, are not complying with investment guidelines permitted due to the war.
However, opponents say the fund’s recommendations could take months, if not years, to be implemented.
In the minds of observers of economic and political affairs, Norway was associated with the wealth fund, as the largest of its kind in the world, which was established nearly 60 years ago. The second word is the name of the capital, Oslo, which was linked to the Palestinian issue through the signing of the famous agreement between the Palestinians and the Israelis, and it was a shift in the course of The Palestinian issue, it was hoped would pave the way for a final settlement leading to a two-state solution.
Unions, politicians and other organizations organized protests demanding the cessation of trade and economic relations with Israel, or at least the cessation of cooperation with companies that support the Israeli military capabilities that they use to commit mass massacres in the Gaza Strip. They believe that the fund is not in urgent need of these investments, as its size exceeds 1.7 trillion dollars, and investments are distributed among 72 countries, and only 1.5 billion dollars are invested in Israel.
Ethical standards
The protesters demand the implementation of the ethical standards set by the Norwegian Parliament and monitored by the government, which forced the Fund over the years to withdraw investments from 9 Israeli companies because of their activities in settlements in the occupied Palestinian territories.
A month ago, Reuters quoted Lynn Al-Khatib, head of the Palestine Committee in Norway, a non-governmental organization, as saying, “The Israeli economy depends on international investments and support from the United States… Therefore, we must move away from the Israeli economy to stop the ongoing genocide.”
Lynn Al-Khatib was speaking before the Norwegian Parliament on the day the Parliament’s Finance Committee held a hearing on the fund’s activities over the past year. Behind Lynn Al-Khatib stood about 20 pro-Palestinian activists, some of whom carried a sign that read, “Withdraw investments now!!.”
In Parliament, left-wing MP Carrie Elizabeth Caskey asked the Finance Minister and fund officials why ethical guidelines had not been tightened given the war in Gaza.
Kaski wants Parliament to impose sanctions on Israel, and to issue instructions to the fund to completely sell its shares in Israeli companies.
Norwegian Central Bank President Ida Wolden-Basch said the current ethics guidelines had been carefully reviewed and had broad political consensus.
hard situation
Although the Fund has been trying for nearly 30 years to distance itself from major geopolitical issues and adhere to a kind of neutrality, in 2022 it was forced to withdraw its investments from Russia due to its war with Ukraine, which is the same reason that prompted the protesters to demand the withdrawal of investments from Tel Aviv. Aviv even before the war on Gaza.
Then came the war to put more pressure on the Fund and its successor, the Norwegian government, in light of fears of an American reaction if it took this step.
The Norwegian government finds itself facing a difficult situation, as there is no way to satisfy everyone, as one of its officials said, but the hopes of those demanding that Norway withdraw investments from Israel have greatly revived, especially after Oslo’s recognition of the Palestinian state.