Israel is set to start up its long-delayed sovereign wealth fund, using profits from its natural gas, media reports said.
The sovereign wealth fund was set up by Israel in 2014, and was initially expected to begin operating in 2018, but was delayed by political turmoil and slower-than-expected tax-revenue growth, according to a «Reuters» report Monday. The sovereign wealth fund needed taxes on the profits from natural gas and other resources to top ILS1 billion before funds would be transferred over, the report said, noting Israel had begun major production of its natural gas deposits in 2013. The Finance Ministry transferred ILS1.14 billion to the fund last week, the report said.
It wasn’t yet clear what the fund would invest in, «Reuters» reported, but added stocks and corporate bonds on international markets were likely targets, with profits to be repatriated to Israel.
The goal of Israel’s sovereign wealth fund resembles Norway’s, which was set up to provide long-term management of revenue from the Nordic country’s oil and gas resources. Norway’s Government Pension Fund Global was set up after the discovery of oil in the North Sea, and was meant to shield the economy from volatility in oil prices as well as to prepare for when the oil reserves are depleted, according to its website.
