Reuters reported, citing minutes of a meeting held on January 28 between the Ministry of Finance and the Ethical Supervision Authority of the Norwegian Wealth Fund, that Norway is considering lifting the ban on its sovereign fund’s investments in Syrian government bonds, in exchange for preventing the largest sovereign wealth fund in the world from investing in Iranian government bonds.
According to the minutes, the ministry reported that a new evaluation was conducted of the countries covered, with the exception of government bonds, and this resulted in Iran being added to the list of banned countries in this field, and Syria being removed from it.
This step represents support for the government of Syrian President Ahmed Al-Sharaa, which took power in late 2024, and is working to rebuild state institutions, the economy and international trade after a civil war that lasted for more than ten years.
Syria expects its economic growth to double this year to approach 10%, driven by the lifting of US sanctions and improved recovery indicators. The head of the International Monetary Fund mission to Syria, Ron van Rooden, said in a statement issued in February that the Syrian economy began to benefit from improved consumer and investor confidence, the lifting of international sanctions, and the gradual reintegration of the country into the regional and global economies.
It is noteworthy that the size of the Norwegian Wealth Fund’s portfolio amounts to $2.2 trillion, and its oil and gas revenues are invested in stocks, bonds, real estate, and renewable energy projects outside the country. Fixed income assets make up 26.5% of its investments, mostly concentrated in the United States, Japan and Germany.
According to the fund’s report for the second half of 2025, US Treasury bonds topped its bond holdings, followed by Japanese and then German government bonds.
The Norwegian government imposes restrictions on the fund’s investment in some government bonds, but this list is subject to amendments, according to an internal document obtained by Reuters under a freedom of information request.
The latest government report on the fund, submitted to parliament on March 27 and not yet debated, said the current ban list included Iran, North Korea, Russia and Belarus, while the 2025 report included North Korea, Syria, Russia and Belarus.
At the end of January, a government-appointed advisory committee warned that the Fund needed to strengthen its preparedness to confront escalating geopolitical risks, noting the increasing use of tools such as customs duties, financial sanctions, and trade restrictions to achieve political goals.
It is worth noting that the establishment of “Norges Bank Investment Management” dates back to the early 1990s, and it operates according to a reference index determined by the Norwegian Ministry of Finance, which limits its ability to carry out broad active investment movements, while its portfolio is distributed among stocks, fixed income, real estate, and renewable energy infrastructure outside Norway. (the East)
