Norway sovereign wealth fund faces renewed scrutiny as Israeli holdings rise to $2.4bn
Norway's sovereign wealth fund is facing fresh criticism after the value of its remaining Israeli holdings rose sharply in the first half of 2026. The fund's investments in Israeli companies reached $2.4bn, according to the supplied report, even though it has not made new investments in Israeli firms since reducing its exposure last year. Campaign groups and charities say the gains deepen ethical concerns over links to companies connected with Israel's military and occupation infrastructure.
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The fund's Israeli holdings were cut from 61 companies to 29 last year, with the reduction justified at the time by what was described as the serious humanitarian crisis in Gaza. Since then, the fund has continued to hold stakes that have delivered strong returns, with the value of those holdings up 15.7 percent from the end of 2025. One of the largest gains cited was in NextVision Stabilized Systems, a drone-camera company whose holding rose to $25.9m from $21m in 2025.
The fund is managed by Norges Bank and was created in the 1990s to invest profits from Norway's oil and gas sector. Its scale gives it significant financial and political weight, and that has made its investment choices a recurring subject of public scrutiny. Critics quoted in the report argue that public capital should not be invested in companies whose activities contribute to military operations, the occupation, or systems that support them.
The controversy comes as the war in Gaza continues and as pressure grows on institutions with exposure to companies linked to the conflict. The report says Israel Aerospace Industries, Israel's largest aerospace and defence company, buys equipment from NextVision. It also says the fund profits from stakes in One Software Technologies, which is said to provide maintenance services for the Israeli Civil Administration's biometric identification system used at checkpoints in the occupied West Bank.
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Another company named in the report, Formula Systems, is said to provide software services to the Israeli military through its subsidiary TSG. Those links have intensified the ethical debate around whether the fund's remaining holdings are compatible with Norway's obligations under international law, according to campaigners. The issue is especially sensitive because the fund is widely seen as a benchmark for responsible state investment.
What remains unclear is whether Norges Bank will make any further changes to its Israeli portfolio or respond to the renewed criticism. The supplied report does not indicate any new divestment decision, and it is not clear whether the fund plans to review the holdings in question. For now, the focus is on whether the strong returns from these investments will prompt a fresh policy debate in Norway and beyond.
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