The World on a Mortgage: Haaland is Not Norway's Greatest Wealth. It's a Decision That Changed the Entire Country
When people think of Norway, most immediately associate it with fjords, Vikings, or Erling Haaland. However, few know that this country, with a population of just over 5.6 million, manages the world's largest sovereign wealth fund. It was built thanks to oil, but today it earns from thousands of companies from Silicon Valley all the way to Europe. What can we learn from Norwegians about wealth building?
When you start reading about Norway today, there's a good chance you'll end up learning about Erling Haaland within a few minutes. You'll find out that he spends holidays on a 57-meter superyacht called Elis Et Mar, which rents for $300,000 a week, and that this probably means he doesn't have his own boat. Or you'll find out that he appeared in a Dolce & Gabbana fashion show and that he loves Hermès handbags. Like, fine, interesting, but I wanted more, so I ended up with something valued at over 2 trillion dollars. And it wasn't Haaland.
I asked myself a simple question. What would you do if you discovered a huge oil reserve beneath your country and billions started flowing into the state treasury?
The Question that Changed Norway
Of course, it wasn't as if the Norwegians discovered oil and set up an investment fund the next day. In 1969, a huge Ekofisk oil field was discovered in the North Sea, and the first billions gradually began to flow into the state treasury. During the 70s and 80s, the state invested in infrastructure, public services, and the welfare system. However, there were growing concerns that the entire country might become too dependent on oil. And it was precisely then that the Norwegians started thinking differently. What if the oil runs out one day? And what will be left for future generations?
The response came in 1990 when the parliament approved the establishment of a state investment fund. However, the first funds didn't arrive until 1996, when the state for the first time had a sufficient budgetary surplus.
And in 2001 came perhaps the most important decision of all. Norway instituted a rule that the government could only draw from the expected returns of the fund, which today amounts to approximately 3% of its value annually. The principal itself remains invested and continues to grow.
And now imagine that you are the Prime Minister of Norway. You have money, and you stand before the citizens, and instead of promising lower taxes, higher pensions, or new roads, you say: No. We will not spend most of this money. We will set it aside and invest it for generations yet to be born. Let's be honest. How many politicians today would voluntarily announce that they would rather leave billions to their successors than to their voters?
How they turned oil into wealth
The fund actually operates surprisingly simply. The excess revenues from oil and natural gas are not sent directly to regular expenses but are transferred to an investment fund, which invests them worldwide. The rules are set by the Norwegian parliament along with the Ministry of Finance. However, the actual decisions about what to invest in are made by Norges Bank Investment Management (NBIM), the investment division of the Norwegian central bank. Approximately 700 people manage the portfolio according to a long-term investment strategy, not based on who just won the elections.
The fund primarily invests in stocks, bonds, commercial real estate, and renewable energy infrastructure. As a result, it holds stakes in approximately 7,200 companies worldwide. Among them are Apple, Microsoft, NVIDIA, Alphabet (Google), Amazon, Meta, Taiwan Semiconductor (TSMC), Broadcom, JPMorgan Chase, and Eli Lilly. It's quite possible that you are currently reading this article on an iPhone, or throughout the day you might open Facebook or Instagram, and in the evening order something on Amazon. My favorite Spotify is also in their portfolio. And the Norwegian fund profits from all this.
The result? The largest sovereign wealth fund in the world. Its value today exceeds 2.1 trillion dollars and owns approximately 1.5% of all publicly traded shares in the world. In terms of conversion, this means roughly 8 million crowns for each of the 5.6 million inhabitants. Thus, Norwegians have not only turned oil into money. They have turned it into the co-ownership of a small part of the world economy.
What it Means for the Average Norwegian
Of course, everyone wonders: If Norway has the largest sovereign wealth fund in the world, does every Norwegian receive a portion of this money directly into their account?
No.
The state withdraws only a limited portion from the fund each year. The rest remains invested and generates returns. This money then goes into the state budget, helping to pay for healthcare, schools, pensions, roads, and other public services. In 2026, the Norwegian government plans to utilize approximately 579 billion Norwegian kroner from the fund, which corresponds to about 27% of the state budget expenditures. But more importantly, there is something else to consider.
Because the Norwegian state has a second stable source of income besides taxes, it does not have to rely on debt to the same extent. And when an economic crisis hits or the economy starts to struggle, it has something to cover some expenses with. Thanks to the fund, Norway has thus achieved greater financial stability.
What about the Czech Republic?
The Czech Republic may not have oil fields in the North Sea, but it definitely is not without valuable assets. The state holds a majority share in ČEZ and also owns ČEPS, Lesy České republiky, Budějovický Budvar, DIAMO, and Prague Airport. And it's not small change. Just the dividends from ČEZ have brought the state tens of billions of crowns annually in recent years.
The difference lies in what happens to the money afterwards. The Czech Republic does not have a fund where part of the revenue from state assets is deposited and invested for the coming decades. The money mostly goes directly into the state budget, where it is used for regular expenses or helps cover the deficit.
It's not about the Czech Republic copying the Norwegian model. Norway had oil, we have a different economy and different possibilities. But perhaps we should ask ourselves whether at least part of the money the state earns from its own assets should also work for future generations. Just like in Norway.
Sources: author text, commentary, NBIM, Regjeringen, Reuters
