Norway's sovereign wealth fund, the largest in the world, has announced plans to further reduce its investments in Israeli companies due to concerns over the humanitarian situation in Gaza and the West Bank. The fund has already divested stakes in eleven Israeli firms, including Bet Shemesh Engines, which provides services to Israel's armed forces. This move follows a review of its holdings after reports emerged about its stake in Bet Shemesh Engines, which was later classified as a high-risk investment due to ethical concerns.

The fund's chief executive stated that more divestments are expected as the review continues, emphasizing that oversight of these investments should have been tighter and more responsive. In recent years, the fund has also sold stakes in Israeli energy and telecom companies over similar concerns, and its ethics committee is evaluating further divestments in the banking sector. Despite these actions, Norway's parliament recently rejected a proposal to divest from all companies operating in the West Bank and Gaza.

The fund, which invests Norway's oil and gas revenues, reported strong financial results for the first half of the year, driven by gains in the financial sector. Separately, Norwegian pension fund KLP has also excluded an Israeli company supplying components for military drones used in Gaza.