The fund's total value has reached the colossal sum of NOK 21,268bn (around €1,858bn), crossing the 20,000-billion mark for the first time. In other words, Norway now has a nest egg equivalent to $340,000 per capita, an unprecedented financial windfall that reinforces Oslo's strategy: turning its oil windfall into lasting wealth for the future.
NBIM
From oil origins to a global financial giant
The creation of this Norwegian sovereign wealth fund - officially the Government Pension Fund Global - has its roots in North Sea oil discoveries in the late 1960s. The oil shock gave Norway's economy a jolt: hydrocarbon production generated enormous revenues for the state. Aware of the risk of overheating and of "Dutch disease” (an economy overly dependent on oil), Norway chose caution very early on. In 1990, the Norwegian parliament legislated to create a sovereign wealth fund into which oil-and-gas surpluses would be paid. The first transfer took place in 1996, and a golden rule was set: this money would be invested only abroad so as not to unbalance the domestic economy.
"The objective of the fund is to use this windfall responsibly, with a long-term vision, in order to safeguard the future of the Norwegian economy,” official documents explain. In other words, it is about stabilizing the economy against fluctuations in oil prices and saving for future generations.
In practice, the fund's operating principle is simple, but demanding in execution. Oil revenues (taxes on oil companies, dividends from national champion Equinor, operating licences, etc.) are paid into the fund rather than spent immediately. Each year, only a limited withdrawal is allowed for the state budget: Norway does not spend more than the fund's expected return, around 3% p.a. in real terms.
This fiscal rule ensures the fund's capital is not touched - only its returns. In fact, the sovereign wealth fund now finances nearly 20% of the national budget while continuing to grow. In good times, excess revenues are saved; in tougher periods, the government can draw a little more to support the economy, providing a valuable cyclical stabiliser. Thanks to this discipline, Norway has avoided the pitfalls of many rentier states and, over three decades, built an extraordinary financial powerhouse.
2025: an exceptional year driven by tech and finance
The year 2025 marked one of the best vintages in the history of Norway's sovereign wealth fund. After an already buoyant period in the 2010s, punctuated by a few jolts (notably a -14% loss in 2022 due to the global equity shock), the fund fully benefited from strong markets in 2025. Its overall return of +15.1% for the year is primarily explained by the surge in equities held in the portfolio. At the end of 2025, equities accounted for 71.3% of its investments and delivered +19.3% over the year. Technology, financial stocks and commodities were the main drivers of performance.
NBIM
In concrete terms, the Norwegian fund - which residents commonly call "Oljefondet” (the "oil fund”) - is now invested in around 7,200 companies worldwide. On average, it holds close to 1.5% of all listed companies on the planet. Its top holdings include US tech giants: Nvidia, Apple, Microsoft, Alphabet and Amazon are among the five most valuable positions in the fund. On its own, the fund holds around 1.3% of Nvidia, 1.2% of Apple and 1.3% of Microsoft, making Norway a heavyweight minority shareholder in these companies. The surge in these stocks in 2025 (driven largely by the artificial intelligence wave) therefore added tens of billions to the fund. Major banks also contributed to the gains: NBIM holds stakes in Bank of America, JPMorgan Chase, Goldman Sachs, as well as European banks such as Santander, UBS and HSBC. Finally, more traditional sectors such as mining and basic materials also played their part. Nearly half of the fund's investments are in the US, or around $1,000bn.
A diversified and responsible portfolio, geared to the future
While listed equities largely dominate the strategy, Norway's sovereign wealth fund remains diversified across other asset classes. In the 2025 balance sheet, bonds (government and corporate) made up 26.5% of the portfolio and generated an annual return of +5.4%. The fund is also a major creditor to many countries, notably through its holdings of US Treasuries, which increased in 2025 to nearly $200bn - with more than half of the fund's bond portfolio denominated in dollars. Real estate has also been part of the mix since 2011: investments in prime offices, retail and top-tier logistics warehouses represent around 1.7% of assets and returned +4.4% in 2025. NBIM thus owns hundreds of buildings in major global cities, from London to Paris and New York.
But it is in new energy that the Norwegian fund is only just beginning to stand out. Since 2021, it has been authorised to invest up to 2% of its assets in renewable energy infrastructure (wind farms, solar, etc.). At the end of 2025, this pocket remained modest (0.4% of the portfolio, or around NOK 91bn), but its return reached 18.1% - evidence of the potential of these green investments.
The fund's 2025-2028 strategic plan also provides for a gradual increase in exposure to renewables, including via indirect investments and new green technologies. Ironically, Norway is investing oil money in the energy of the future, preparing for the post-oil era while benefiting from green growth.
The world's largest sovereign wealth fund, far ahead of its peers
With a value of around $2,000bn at the end of 2025, Norway's sovereign wealth fund has strengthened its position as the world's number one. It far exceeds its closest competitor, China's CIC (around $1,300bn in assets), as well as Gulf funds such as Abu Dhabi's ADIA (around $900bn) or Saudi Arabia's PIF (around $700bn).
Since 1998, the fund's annualised return has been around 6.6% p.a. - a robust performance, but one that includes negative years such as 2008 or 2022. Nothing guarantees the 2020s will be as favourable as the previous decade, especially amid geopolitical uncertainty.
NBIM
Now, Norway itself must manage the post-oil era. Official projections estimate that the country's oil revenues have probably peaked and will decline slowly over the decades to come. The flow feeding the fund will eventually dry up, and the entire burden will then rest on sound management of the accumulated capital. Public spending linked to population ageing (pensions, healthcare) could rise, putting the 3% rule under pressure - would Norway then have to draw more from the fund, at the risk of eroding it? The debate surfaces from time to time in Norway, between those favouring greater use (to invest in the domestic ecological transition, for example, or to support the economy in the event of a shock) and advocates of a conservative approach. So far, Norway's political consensus has remained faithful to the original objective: preserving capital for the future.
