The Israeli government was particularly silent on Norway’s decision on 11 August, which began with moral concerns over war in Gaza, for partially division in many Israeli companies.
The Nordic country’s $ 2 trillion (€ 1.71 trillion) sovereign money filed Siad Wild withdrew Israel -related investments from 11 firms and ended contracts with managers operating in the country. Following media reports, funds were launched for immediate review that he had invested in a firm that makes some parts for Israeli military fighter jets.
While Israel’s media labeled Norway’s move “deeply harassed” and “politically the motive”, some analysts feel that Israeli officials are holding a low profile for fear of deliberately accepting the movement of boycott (partition and restrictions), which was campaigned against Israel in the last two decades.
Many symbolic victories for BDS boycott movement
From its establishment in 2005, BDS has won a series of symbolic and physical win by pressurizing institutions, corporations and governments to cut relations with Israeli institutions involved in occupation of Palestinian regions.
The Palestinian-led movement has been regularly accused of anti-Jewish by Israel and the United States. The German Bundestag also passed a resolution on the BDS – first in 2019 and re -confirmed in 2024 – the movement was banned from calling it “antisementic” and receiving public funds.
The BDS gained a new momentum after the attack of Palestinian terrorist group Hamas on 7 October 2023 after the attacks of Hamas. The movement led the larger partition from the choice of Axa and Scotiabank, while Samsung’s next South Korean tech veteran venture funds and 7-Ilevan’s exit from Israel.
BDS-organization consumer Baikalash hit McDonalds and Prett, while many cities and universities in the United States, so passed resolutions to cut relations with firms associated with Israel, driven by BDS campaigns.
Although the partition of Norway alone is expected to have limited economic impact on Israel, Economist Benjamin Bental, Heifa University, Israel, warned that it could set a dangerous example.
,[Norway is sending] A sign of Israeli firms activities that do not like it, which may follow the other, “Bental told DW.” Once the dam breaks, if it becomes flood, it will be very important. ,
Norway reviews other Israeli holdings
Norway’s sovereign wealth funds, the world’s largest, Nayak shares in 65 Israeli companies in late 2024, priced at around $ 1.95 billion (€ 1.67 billion). It still holds bets in about 50 Israeli firms.
In the hands of the Central Bank of Norway, the fund said that it is actively reviewing these holdings to ensure compliance with international law. It is now planning to manage all Israeli projects at home and limit future investment to companies that are in Israel’s Equity Benchmark index.
The BDS movement saw Norway’s decision as a “major moral victory”. One of the most influential labor organizations in Norway, Low Trade Union, has advocated the government to take firm action. The members of the Sangh recently voted in favor of Israel’s full economic boycott.
Norway’s declaration follows a stable move of partition throughout Europe. In April last year, Ireland’s ISIF Strategic Investment Fund divided by six Israeli firms. Many councils in the United Kingdom have passed the motions due to the need for their pension funds to get out of their Israeli investments.
Several decisions were associated with Israel’s Nestra scheme, occupying the West Banand East Jerusalem, which is considered illegal under the United Nations and the European Union International Law. Israel announced the biggest expansion of settlements at the West Bank occupied in the West Bank recently, said Israeli Defense Minister Israel Katz said the move “prevents the establishment of a Palestinian kingdom.”
BDS ‘nothing’ compared to Trump’s tariff on Israel
Danny Bahar, senior Fellow of the Washington DC-based Think Tank Center for Global Development, believes that boycott and partition on Israeli’s development and the ability to fight the war remains modest.
,[The BDS boycotts and divestments] Not a scale that could break into the Israeli economy, “Bahar told DW.” They are nothing compared to tariffs that Trump placed on Israel, “he said” worst boycott “Israel has ever received.
In April, US President Donald Trump announced that goods entering the US in Israel would be subject to 17% of TAIFs, despite that Israel abolished all TAFs on American imports. Later the figure decreased by 15%.
Referring to Norway’s asset sales, Bahar argued that widespread investment landscape in Israel remains flexible and market forces would end the decision.
“Another thesis is going to buy investment because they are good company. Israel has a lot to export in terms of knowledge and products.
Despite the agony among some investors due to geopolitical tension and BDS campaigns, foreign investment in Israel has quite back on a recession in 2023. In 2024, according to Bank of Israel, the scope of net investment of about $ 27 billion compared to only 8 billion dollars in 2023.
Israel faces a rising threat to restrictions
This flexibility underlines the strong economic fundamental and deep relations for the global markets of Israel. Nevertheless, rising international pressure – highlighted by Norway’s recent decision – indicates a growing push to make Israel accountable for its tasks at Gaza and West Bank through targeted sanctions.
In his final year at the office, former US President Joe Biden banned 19 Israeli settles and EVEHT entries for West Bank violence, which was reversed by Trump in January. In more than 30 states, including Texas and Florida, there are anti -BDS laws, which prevent state agencies from working with the boycott of Israel.
Britain, France and Canada have placed a curb on Israeli settlers accused of violence, including travel restrictions and cold property. The European Union has blacklisted the Israeli groups involved in attacks on Palestinians. Meanwhile, Washington has blocked property and financial access to individuals associated with disturbance.
Nine other countries including South Africa, Bolivia and Malaysia have moved forward, implementing full economic sanctions against Israel. Thesis stages include banning the sale of arms and preventing fuel shipment that can be used by the army.
Germany, traditionally one of Israel’s closest colleagues, announced a stop for all military exports this month, which could be used in Gaza “until the next notice,” citing poor humanitarian crisis.
Can the restrictions force Israel’s hand?
The European Union is considering whether Israeli’s € 95 billion ($ 111 billion) is to reach the Europe Research Fund, blaming human rights violations in Gaza. The scheme is currently halted with a lack of consensus with France, Spain, Ireland and Slovenia, which urges Brussels to exceed, while Germany, Italy and Hungarian restrictions.
Bental warned that the European Union “has approved the serious impact of wood on the ability of Israel firms to function.” About one -third of Israeli exports go to the European Union, which he said that Israeli’s GDP contributes about 1%.
Bahar resonated this concern, but pointed to Israel’s deep role in global innovation and trade, as any pressure from the international community could be limited in the realm.
He said, “Whatever you think about Israel and war, it is very efficient in terms of country engineers and developers. The economy is so inherent in the global economy that it is not easy than Israel.”
Edited by: Ashutosh Pandey
