Norway blacklists Gulf companies from investing in pension funds
Shafaq News/ Norway’s largest pension manager has diverted millions of dollars from Gulf companies, citing concerns the companies may facilitate “human rights violations.”
KLP, which overlooks $70 billion, blacklisted companies listed in Saudi Arabia, Qatar, the UAE, and Kuwait from its investment universe.
“KLP has excluded 11 of these companies because it considers that there is an unacceptable, sector-specific risk of contributing to human rights abuses,” the company’s statement says. " In addition, one company has been excluded based on its close ties to a dominant state owner, combined with an active position in violation of KLP’s expectations concerning climate change mitigation and energy transition plans,” the statement continued, referring to Saudi oil giant Aramco.
The Norwegian mutual insurance company also made note of the controversial Kafala (sponsorship) system Gulf states require for migrant workers, which has been described as akin to modern-day slavery.
Some of the Gulf companies include those in the real estate sector, as KLP says migrant workers from Africa and Asia have faced discrimination and human rights violations. KLP also targeted the telecommunications sector, saying artificial intelligence developments in the region increase the risk of surveillance and censorship in the region.
“For many years, human rights organizations like Human Rights Watch and Amnesty International have highlighted migrant workers’ poor employment conditions,” the statement reads. “The Kafala system, under which each migrant worker needs a sponsor to get a job, has been widespread throughout the region. The arrangement has also been used to restrict many workers’ freedom to move freely in and out of the country.”
Karin Aziz, the KLP head of responsible investment, said, "Gulf states remain characterized by authoritarian systems of government that restrict freedom of expression and political rights, including of critics and human rights activists.”
Western nations have recently set roadblocks on foreign investment by Gulf nations.
Earlier in December, Washington forced Saudi Arabia’s hand at selling off its stake in a Silicon Valley AI chip startup after the inter-agency Committee on Foreign Investment in the US (CFIUS) cited “national security concerns.”
CFIUS is also reviewing several multibillion-dollar investments in national security concerns. As of last week, the White House is reviewing more than half a dozen acquisitions from the Abu Dhabi Investment Authority, Mubadala Investment Co., and Saudi Arabia’s Public Investment Fund (PIF).
In August, the US forced humanitarian investments in Syria by Saudi Arabia and the UAE to be frozen due to threats made by Washington.
“All the Emirati and Saudi promises to help Syria and activate investment in it on several levels remained words on tongues and ink on paper, and none of them were translated into reality,” Arab diplomatic sources told Al-Akhbar.
The US also made vocal concerns about “national security concerns” regarding UAE investing in New York-based Fortress Investment Group over the Gulf nation’s ties with China.
The UK also imposed sanctions on the UAE and two other West Asian countries earlier this year, citing close ties to Russia. This move has been described as London’s greatest action in hindering the Kremlin’s access to foreign military supplies.
