ALBAWABA - The Norwegian sovereign wealth fund, which has more than $2 trillion in assets and is the largest in the world, has said it will no longer invest in 29 companies that are connected to Israel.
One of these companies is Caterpillar, a huge U.S. construction equipment company. The decision has caused a lot of debate in Europe and the US, with worries about the financial, political, and diplomatic effects.
Bloomberg says that the decision was made after Norway's Finance Minister Jens Stoltenberg ordered a review by the government. He said the decision was based on "humanitarian grounds," pointing to the fact that Caterpillar's equipment was used to tear down Palestinian homes in Gaza and the West Bank as a major reason for the fund's stance.
The fund was set up 35 years ago with the goal of maximizing financial returns for future generations of Norwegians without any political interference. But the fund has had to rethink its neutrality because of changing global conditions and growing ethical concerns.
The decision has also sparked debate in Norway ahead of the national elections set for Monday. Investments in companies that sell goods to the Israeli military have become a hot topic in the election, along with other important issues like rising food prices and housing costs.
Strong Pushback from the U.S.
The move made people in Washington very angry. Lindsey Graham, a Republican senator and close friend of former President Donald Trump, posted on X:
Bloomberg says that Norway and the United States have not yet reached a trade deal. The US has already put 15% tariffs on Norwegian goods. Experts say this could lead to a bigger trade fight.
Effects on finance and diplomacy
The fund's withdrawal affects 29 companies around the world, not just Caterpillar. This raises concerns about how it might affect Norway's relationships with multinational companies and U.S. financial markets.
Bloomberg estimates that the decision could cost Oslo more than expected, which would have an effect on trade and politics across the Atlantic.
