Exclusive-Norway to Lift Ban on Wealth Fund Investments in Syrian Bonds, Document Shows

Norway to lift ban on wealth fund investments in Syrian bonds, document shows

Norway's Wealth Fund Policy Changes and Global Financial Implications

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By Gwladys Fouche

Norway Lifts Ban on Syrian Bonds

OSLO, April 14 (Reuters) - Norway is lifting the ban on investments in Syrian government bonds by its $2.2 trillion wealth fund, in a further sign of the Middle Eastern country's re-entry into global finance after the ousting of former Syrian president Bashar al-Assad.

At the same time, the Nordic country is planning to forbid what is the world's largest sovereign wealth fund from investing in Iranian government bonds in something of a symbolic move given the hefty sanctions already placed on Iran.

The decision revealed in a previously unreported government document signals support for the government of Syrian President Ahmed al-Sharaa, which took power in late 2024. 

Al-Sharaa has been seeking to rebuild state institutions, the economy and international trade after more than a decade of war, sanctions and financial isolation. The most stringent U.S. sanctions were lifted in December.

Major Investor Status and Investment Strategy

MAJOR INVESTOR    

The Norwegian wealth fund invests the state's revenues from oil and gas production in stocks, bonds, property and renewable energy projects abroad. 

Currently 26.5% of its investments are held in fixed income, mostly in the United States, Japan and Germany. 

Government Bond Exclusion List Changes

The Norwegian government forbids the fund to invest in certain government bonds. But the list is changing, according to an internal document released to Reuters under a freedom of information request.     

"The Ministry ... informed that a new assessment has been made of which states are covered by the government bond exemption," said the minutes of a January 28 meeting between the finance ministry and the fund's ethics watchdog.

"Iran is included on the list of countries covered by the government bond exemption, and Syria is removed."

The latest government white paper on the fund, presented to parliament on March 27 and which has yet to be debated, said the current exclusion list for government bonds affects Iran, North Korea, Russia and Belarus. 

By contrast, the 2025 white paper said the exclusion list affected North Korea, Syria, Russia and Belarus.

Both white papers say the government makes regular assessments of the exclusion list in relation to international sanctions in force at the time.

The finance ministry did not respond immediately to a request for comment.

Signal of Support for Syrian Government

SIGNAL OF SUPPORT

Syria's reintegration into the global financial system includes the reactivation of the central bank's account at the Federal Reserve Bank of New York for the first time since 2011, paving the way to expand international banking ties in the push to attract foreign investment and rebuild its economy after a devastating 14-year war.

Norway's move does not automatically mean its wealth fund will invest in Syrian government bonds. The fund has no fixed-income holdings in any countries in the Middle East, fund data shows. But the decision signals a degree of support for the policies of the Al-Sharaa government.  

Potential Impact on Global Investment Trends

The fund is one of the world's largest investors and its decisions have often led others to follow suit, such as its decision to divest from companies that derive 30% or more of their revenue from coal production. 

The fund's operator, Norges Bank Investment Management, did not reply immediately to a request for comment. 

(Reporting by Gwladys Fouche in OsloAdditional reporting by Feras Dalatey in DamascusEditing by David Goodman)