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ChatGPT went dark yesterday for some time and the first thought that crossed everyone’s mind was where to next? Gemini, Grok and Claude were some of the best bets as per social media users.

Boston Consulting Group’s CEO has apologised for the firm’s role in a controversial Israeli-backed aid project in Gaza, as reported by The Washington Post. Meanwhile, Canada has invited Saudi Crown Prince Mohammed bin Salman to the upcoming G-7 summit, signalling a potential shift in Ottawa’s foreign policy under Prime Minister Mark Carney. Separately, a $5 billion oil-backed loan between Nigeria and Saudi Aramco has stalled, Reuters reports, as falling crude prices raise concerns among banks expected to co-fund the deal — potentially shrinking what would be Nigeria’s largest such loan.

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BCG CEO Apologises Over Gaza Aid Project, Cuts Ties With Controversial Israeli-Backed Foundation: Washington Post

What is it about?

• The CEO of Boston Consulting Group (BCG) has apologised to employees after the firm’s involvement in designing and supporting the Gaza Humanitarian Foundation (GHF), an Israeli- and US-backed aid initiative in Gaza, sparked internal outrage and global criticism.

• According to internal documents obtained by The Washington Post, BCG played a central role in developing GHF’s operations, strategy, and procurement, including managing private military contractors and residential aid compounds.

• The GHF was created to replace the United Nations Relief and Works Agency (UNRWA) as the primary distributor of humanitarian aid in Gaza but faced condemnation for bypassing established multilateral humanitarian frameworks.

Why it matters

• The initiative was rejected by the United Nations and many NGOs for violating humanitarian principles, leading to widespread concern over selective aid distribution and operational transparency.

• Violence and chaos have accompanied GHF’s activities on the ground; at least 30 Palestinians were reportedly killed near GHF aid distribution sites in southern Gaza this week, according to the Palestinian Ministry of Health.

• Internal BCG employees warned leadership that the firm’s involvement risked complicity in “population transfer and ethnic cleansing,” citing leaked documents on controversial residential aid compounds referred to as “HTAs.”

• BCG has publicly condemned the unauthorised actions of two partners involved, who were subsequently dismissed from the firm.

What’s next

• BCG has terminated all work related to the Gaza project as of May 30 and placed the partner responsible on administrative leave pending a formal internal review.

• Despite BCG’s withdrawal, the Gaza Humanitarian Foundation has pledged to continue its operations, with interim director John Acree highlighting the delivery of over 7 million meals in eight days.

• Following the resignation of former GHF executive director Jake Wood, American evangelical leader Rev. Johnnie Moore has been appointed the new director to oversee the mission.

• The controversy has intensified scrutiny of private firms’ roles in humanitarian crises, with BCG also involved in a separate restructuring contract with the World Health Organization.

Markets

Saudi Crown Prince Mohammed bin Salman Invited to G-7 Summit by Canada

What is it about?

• Canada has extended an invitation to Saudi Arabia’s Crown Prince Mohammed bin Salman (MBS) to attend the upcoming Group of Seven (G-7) summit, scheduled to begin Sunday in Kananaskis, Alberta.

• MBS was also invited to last year’s G-7 meeting in Italy but was unable to attend. His participation this year remains uncertain.

Why it matters

• The invitation signals a shift in Canada’s foreign policy under newly appointed Prime Minister Mark Carney, who assumed office in March.

• Relations between Canada and Saudi Arabia had been strained for years after former Prime Minister Justin Trudeau criticized Saudi human rights practices, leading to the expulsion of Canada’s ambassador from Riyadh in 2018.

• Diplomatic ties were only restored in 2023, after a prolonged freeze that coincided with high-profile incidents like the murder of journalist Jamal Khashoggi.

What’s next

• The invitation is part of Carney’s broader effort to ease tensions with nations where relations frayed under Trudeau, including inviting Indian Prime Minister Narendra Modi to the summit despite controversy over alleged harassment of Canadians linked to India.

• Recently, Carney held talks with Chinese Premier Li Qiang focusing on trade, fentanyl issues, and improving communication between the two countries.

• Observers will be watching closely to see if MBS attends the G-7 summit, potentially marking a further warming of ties between Canada and Saudi Arabia.

Nigeria’s $5 Billion Oil-Backed Loan from Aramco Delayed Amid Oil Price Drop, Reuters Sources Say

What is it about?

• Nigeria and Saudi Aramco are negotiating a record $5 billion oil-backed loan, but recent declines in global crude prices have delayed the deal, Reuters reports, citing four sources.

• The loan would be Nigeria’s largest oil-backed financing to date and Saudi Arabia’s biggest involvement of this kind in Nigeria.

• Talks began after Nigerian President Bola Tinubu met Saudi Crown Prince Mohammed bin Salman last November at the Saudi-African Summit in Riyadh.

Why it matters

• Brent crude prices have dropped around 20% since January—from above $82 to near $65 per barrel—largely due to changes in OPEC+ production strategy aimed at regaining market share rather than limiting supply.

• Lower prices mean Nigeria must commit more barrels of oil to back the loan, straining the country’s already challenged production capacity, which is under pressure due to years of underinvestment.

• Nigeria’s banks and potential lenders, including Gulf and African banks, have expressed concern about the availability and delivery of oil cargoes, slowing progress.

• The $5 billion facility is part of President Tinubu’s broader plan, seeking approval for $21.5 billion in foreign borrowing to support Nigeria’s budget.

What’s next

• Nigeria currently uses roughly 300,000 barrels per day to service existing oil-backed loans, with the new loan expected to require at least 100,000 bpd as collateral.

• The Nigerian National Petroleum Corporation (NNPC) is working to increase production, with Tinubu issuing orders to reduce production costs to free up more revenue per barrel.

• However, April output was below budgeted expectations at just under 1.5 million bpd versus a target of 2 million bpd.

• Nigerian trading firm Oando is expected to manage the physical oil cargo offtake if the loan goes ahead.

🔍From Smashi Business’ Desk

• Here’s the real story behind Abu Dhabi’s iconic moniker: The Capital of Capital.

• Arab excellence is possible — and Prince Alwaleed bin Talal proves it, says Emirati Billionaire Khalaf Al Habtoor.

• A viral video circulating online falsely claims that Saudi state-owned Al Arabiya reported President Zelensky purchased a $3.2 million apartment in Dubai’s Burj Khalifa for his mother.

• First Class Just Got Sweeter as Emirates Airlines partnered with Dubai’s beloved Home Bakery this Eid Al Adha.

🔍In other news…

• Canada, Australia, New Zealand and Norway joined Britain in freezing the assets and imposing travel bans on Israel's national security minister Ben-Gvir - a West Bank settler - and finance minister Smotrich.

• EU removes UAE from 'high-risk' money-laundering list.

• UK's Wood Group wins $2.8 billion ADNOC contract.

• ADNOC Gas awards $5 billion in contracts for first phase of Rich Gas Development Project.

• Secret records found of alleged NMC fraud, court told.

• Gulf banks fight back to beat buy-now-pay-later advantage.

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