Norway’s Sovereign Wealth Fund Drops Israeli Banks, Caterpillar

(MENAFN) In a recent move, the world’s most prominent sovereign wealth fund, Norges Bank Investment Management, revealed on Monday that it has eliminated five Israeli financial institutions and the American construction equipment manufacturer, Caterpillar, from its investment holdings.

According to the fund’s executive board, the organizations removed include First International Bank of Israel, its parent company FIBI Holdings, along with Bank Leumi, Mizrahi Tefahot Bank, Bank Hapoalim, and Caterpillar.

The board explained the rationale behind the divestment was based on what it described as "an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict."

The fund’s ethical advisory body highlighted that Caterpillar bulldozers have allegedly been used without legal justification by Israel to destroy Palestinian properties in both Gaza and the West Bank.

"There is no doubt that Caterpillar’s products are being used to commit extensive and systematic violations of international humanitarian law,” the council stated.

Further elaborating on its decision, the ethics council noted that the Israeli financial institutions in question have provided critical banking services that facilitate construction efforts within Israeli settlements located in the West Bank — a practice often criticized internationally.

Valued at approximately $2 trillion, Norges Bank Investment Management had previously divested from 17 other Israeli firms, whose combined investment value stood at around $143.3 million.

This development comes amid increasing global outrage over Israel’s ongoing military operations in Gaza.

Since October 2023, the conflict has reportedly resulted in the deaths of nearly 63,000 people and has led to a large-scale humanitarian crisis marked by severe food shortages.

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