Technologies
How War in the Middle East Impacted the World’s Largest Mobile Phone Show
Hundreds of companies planned to gather in Barcelona to talk business, but as the conflict disrupted travel, not all of them arrived.
On a Tuesday in the middle of Mobile World Congress 2026, three industry experts gathered for a panel to chat about smart glasses and extended reality tech. But a fourth member of the panel, who was based in Dubai, never made it to the conference. Two days before, the US and Israel launched airborne attacks on Iran, and flights had been grounded throughout the Middle East.
Even thousands of miles away in Barcelona, on the western edge of the Mediterranean Sea, MWC was affected by the conflict. While events and meetings at the world’s largest mobile tech conference proceeded as planned, albeit under the anxious awareness of larger geopolitical events, there were notable absences.Â
Some booths stood empty, and some meetings scheduled between absent attendees weren’t held. Exhibitors walked the halls and saw a diminished presence from Middle Eastern companies.
While the conflict was just beginning as MWC took place, it had already affected attendees and changed the experience. While distant from the fighting in the Middle East, the war’s impact was just as seriously felt in the middle of a conference about bringing humans together.
The financial, emotional and mental cost of war on a tech conference
The fourth panelist on Tuesday’s panel was supposed to be Roman Axelrod, cofounder of Xpanceo, who would have likely discussed the smart contact lenses the company intended to show off in prototype form at MWC. But neither Axelrod nor the samples ever left Dubai, where the company is based. Conference attendees who walked by Xpanceo’s booth were greeted by employees who had flown in from elsewhere and apologized that they had only hastily made video demonstrations of the technology samples that were supposed to be on display.
I had already planned to chat with Valentyn S. Volkov, co-founder and CTO of Xpanceo, who likewise didn’t make it to MWC. While the company was intentionally headquartered in Dubai as a reliable and predictable jurisdiction for business (as well as centrally located, with many business destinations within a 7-hour flight), the country falls within the airspace of the current conflict. As a result, businesses are losing money, especially funds spent on opportunities at MWC.
“We already kind of lost, I would say, a significant amount of resources — physical, mental, scientific resources — simply because we could not get everyone to Barcelona. We could not get our prototypes to Barcelona as planned,” Volkov told me.
Fortunately, Volkov was in good spirits when I chatted with him over Zoom via a laptop in Xpanceo’s booth. He was safe, noting that local authorities in Dubai were providing “logistic safeness.”Â
Our chat quickly turned to the smart contact lenses that the company is working on, with plans to roll out functioning prototypes by the end of the year. As Volkov described their potential capabilities, they sounded like the next evolution of smart glasses, like the Google Specs that I saw at Google I/O last year, offering heads-up display information relayed from a nearby phone, and even potentially health data like glucose level readings taken from the lens’ contact with the eye’s tears.
“Those beauties were supposed to be shown for the very first time [at MWC], and we put lots of effort and resources into that. It’s completely bad luck,” Volkov said.
Thanks to modern network technology, Volkov and I were still able to have this virtual conversation — and fortunately, the war had not affected him or the infrastructure where he was. But anyone can tell you the value of having an in-person exchange over one on small screens. What was lost through the wires because Volkov wasn’t there to demonstrate features and concepts of Xpanceo’s products through body language and demonstration?
It’s not hard to imagine scaling that up to all the business conversations and networking opportunities lost to those whose flights were canceled and lives locked down due to the conflict in the Middle East. Some of those meetings could likely be shifted to digital chats like mine, but MWC is a show about making new connections in person, seeing new devices and getting updated on the latest tech trends across the mobile and telecom industries.Â
But I met some attendees who were suffering the opposite fate, having flown out early from countries now in restricted airspace. They made it to MWC, but it’s too early to tell when they can fly home.
Stranded at MWC, return unknown
I sat down with Said Saidi, an exhibitor at the show, and chatted in between his calls home. I couldn’t imagine the strain he was under with family back in Dubai and no clear idea of when he’d be able to rejoin them.Â
A resident of the United Arab Emirates for 19 years, Saidi was comforted to be able to chat with his family on the phone every few hours, who he said were safe. Aside from noise made by the defense system and drones coming from Iran, his reports from home said everyone is living peacefully and has no shortage of supplies, and they have so far had no major stress.
Saidi explained that this was counter to misinformation being spread on social media that says people have been stuck in the UAE without accommodation. As he said, and reports have echoed, the government and hotels have provided stranded travelers with free stays.
Saidi caught an early flight out to Barcelona the previous Friday, but most other exhibitors from the Middle East usually fly out on Sunday, he said. By then, commercial flights from the area were largely grounded following the initial strikes by the US and Israel on Saturday morning. He said the impact of this region-wide air travel blackout was stark. After walking around the show floor twice, even all the way out to the startup area at the far end of the convention center, the presence of attendees from the Middle East is “near zero,” Saidi said.Â
While he made it to MWC, many of the meetings Saidi was supposed to have with peers from other Middle Eastern companies had to be canceled or held online. It’s a loss all around.
“Usually, the main purpose of the exhibition is to show that we are present, we are there, and also to meet new leads and new business,” Saidi said. While executives may normally move in their own circles, at MWC, they can be met on the show floor by anyone. “The exhibition is always a good chance to meet people and do that first handshake and build on it,” Saidi said.
Waiting for the limbo to lift, but the impact remains
In three days of running around the MWC show floor, I tried to gauge the scope of these absences. None was more obvious than in the startup area, 4YFN, which was filled with company representatives from every corner of the Earth — except a strand representing the Palestinian Information Technology Association of Companies. Just two booths were manned out of what was supposed to be seven, with the rest of the startup representatives unable to fly to the show.
The representatives who were there politely declined to comment for this story and weren’t sure when they’d be able to fly back.Â
Saidi said the same. While he asserted that his company was taking care of him, and that he felt totally relaxed as long as his family was safe back in Dubai, he had no inkling of when he’d be able to return home. Â
“I have zero expectations,” Saidi said. “At this point in time, we cannot predict anything.”
From within Dubai, during our conversation, Xpanceo’s Volkov had a more optimistic outlook, with significant hope that the situation would stabilize within a week. But if it is a prolonged issue, he said his company would be prepared for that, too. And work is continuing remotely in the meantime.Â
The war is likely to have an impact on the mobile industry beyond MWC. Analysts have adjusted their previously dim projection on 2026’s expected phone sales to an even bleaker outlook, expecting a 13% drop over the year. Mostly, they blame the RAM shortage, which is plaguing the tech industry as AI data centers gobble up memory.Â
But when I chatted with International Data Corporation’s Jeronimo Francisco, he noted that the regional chaos of the war with Iran contributed to that drop, at least in terms of disrupting supply chains, increasing the cost of oil and forcing companies to find workarounds for wartime bottlenecks.
“If there was no memory crisis, instead of the market dropping 13% it would drop 5 in the worst-case scenario, something like that,” Francisco said.Â
It was a poignant moment for the mobile industry. Even as the AI industry-caused RAM shortage is poised to increase phone prices in 2026, MWC was awash in company slogans embracing AI agents and other applications of generative AI. Satellite companies heralded the era of increasing connectivity beyond the range of traditional cell networks. Going to the show is an opportunity to catch wind of exciting trends awaiting phone owners in the months to come.Â
But even when MWC feels like being in a bubble of wonky news and enthusiastic predictions, sometimes the bubble is popped by global events that significantly disrupt lives. At CNET, we have covered a lot of the coolest discoveries we made at the biggest phone show of the year — but even immersed in the deepest phone dives, it’s important to remember the human impact of conflicts that reach thousands of miles to a convention center in a Catalonian beach town.Â
Technologies
Passengers and crew foil co-pilot’s apparent attempt to crash FlyDubai flight to Israel
One of the pilots on a FlyDubai flight headed for Israel stabbed the second pilot, according to Israeli Prime Minister Benjamin Netanyahu.
On-duty flight crew and passengers managed to foil a pilot’s apparent attempt to crash a FlyDubai flight, after reports emerged of a fight in the cockpit.
The incident on flight FZ1073 from Dubai to Tel Aviv happened when a co-pilot stabbed a pilot, according to Israeli Prime Minister Benjamin Netanyahu, who praised the victim’s quick thinking.
“Despite being stabbed and seriously injured, he fought back, resisted, opened the cockpit door, and enabled passengers and crew to overpower the attacker — preventing a catastrophic mid-air disaster. He saved the lives of 174 people, including Israeli citizens and other nationals,” Netanyahu wrote in a post on X.
FZ1073 was diverted to the Tabuk airport in Saudi Arabia, the airline said, after being successfully secured and diverted by flight crew.
FlyDubai in a statement said that an “altercation” occurred on the flight deck of the plane, but did not mention a stabbing.
However, the airline added that the underlying reasons and motives for the clash is currently unknown, urging all parties to refrain from speculation.
The injured pilot was identified by Netanyahu as Indian national Smit Machchhar. No details have been released on the identity of the attacker, except that he was being interrogated by Saudi authorities.
The Indian embassy in Riyadh said on X that Machchhar is in a hospital in Tabuk, and is reported to be in stable condition.
The Israeli Prime Minister also identified the passenger who broke into the cockpit as Yaniv Hayun, calling him a “hero” and adding he deserved “a global medal of honor.”
Flight data from tracking site FlightRadar24 showed that the plane had experienced extreme altitude fluctuations before broadcasting a “general emergency” squawk code.
FZ1073 had dropped from over 14,000 feet in just 29 seconds, and FlightRadar24 also added that vertical speeds ranging from approximately -30,000 to +10,000 feet per minute were observed from the transponder data.
For context, vertical speeds during normal operations rarely exceed plus or minus 4,000 feet per minute, it added.
Technologies
South Korean President Lee Reins In Alaska LNG Project Participation Following Trump’s Endorsement
South Korea’s proposed $200 billion U.S. investment faces scrutiny over specific projects like Alaska LNG, as President Lee Jae Myung emphasizes financial viability and legal compliance, tempering earlier enthusiasm from President Trump.
South Korea’s proposed $200 billion investment in the U.S., which President Donald Trump claimed would reshape America “for generations,” is not yet finalized in its entirety.
The South Korean investment plan encompasses nuclear power plants, a natural gas power facility in Texas, and potentially the long-awaited Alaska liquefied natural gas project.
Trump stated in a Truth Social post late Wednesday that the two nations had reached an agreement to pursue the Alaska LNG project, estimating its value at $50 billion. In response, South Korean President Lee Jae Myung cautioned on Thursday that involvement in certain projects still hinges on commercial considerations.
Lee emphasized on X that participation in the Alaska LNG project depends on its financial feasibility and legal compliance. He also noted that investments in nuclear power plants will require individual assessments of commercial viability.
The U.S.-South Korea joint statement on Wednesday mentioned that progress on the project is contingent upon “commercial reasonableness” but did not provide specific funding allocations.
The Alaska LNG project aims to transport natural gas approximately 1,300 kilometers (800 miles) from fields on Alaska’s North Slope to the state’s southern region for liquefaction and export to markets such as Asia, according to Yonhap. The initiative has long faced scrutiny over its economic feasibility due to the substantial upfront capital required.
Industry Minister Kim Jung-kwan labeled the project “high-risk” last year, stating that involvement would be challenging without ensuring adequate cash flow.
Overall, the investment package includes $22.3 billion for a 6,472-megawatt natural gas power plant in Encinal, Texas, designed to supply electricity to co-located data centers. The project will be spearheaded by developer Related Cos. and U.S. energy company NextEra Energy.
Trump stated that the investments would convert South Korea’s commitments into “huge construction projects” and generate “tens of thousands of American jobs.”
“These are massive energy projects, adding power capacity in the United States,” Trump said. “This is new construction, new manufacturing, and great jobs for American workers.”
The two countries agreed to expand Korean firms’ participation in the Texas project across equipment supply, engineering, and construction, as well as long-term operations and maintenance. The U.S. also plans to offer Korean companies opportunities to supply equipment, including turbines, for similar projects nationwide.
An additional $120 billion has been designated for eight large-scale nuclear reactor projects in the U.S. Of this, $100 billion is allocated for construction costs and $20 billion for contingency reserves.
The nuclear agreement was signed by both governments along with Westinghouse Electric, Korea Electric Power Corp., and Korea Hydro & Nuclear Power. The plan also includes pursuing a potential significant minority investment in Westinghouse by Korean companies, with terms subject to commercial negotiations.
Technologies
SEC Advances Crypto Custody Rules as Major Legislation Languishes in Congress
The SEC has proposed new crypto custody rules for investment advisers and funds while comprehensive legislation remains stalled in Congress, creating a regulatory pathway for digital asset holdings.
The U.S. Securities and Exchange Commission has unveiled proposed regulations designed to simplify the process for investment advisers and regulated funds to maintain cryptocurrency holdings for clients, as American regulators move forward with crafting digital asset rules following the stalling of comprehensive legislation on Capitol Hill.
The proposal, revealed Thursday, would create a specialized framework governing how registered investment advisers, investment companies, and business development companies maintain custody of crypto assets.
The modifications aim to update decades-old custody requirements and eliminate regulatory obstacles that the SEC says have restricted advisers’ capacity to provide crypto-related investment options.
Under the proposed regulations, crypto assets could be held in self-custody under “certain circumstances,” while state trust companies could also function as custodians for crypto assets belonging to clients and regulated funds.
The changes could also grant regulated funds expanded authority to offer investors crypto-related investment strategies, according to the SEC.
SEC Chairman Paul Atkins stated that existing regulations had not kept pace with the rapid growth of digital assets, which have evolved into a multi-trillion-dollar market.
“Today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before,” Atkins said.
The proposal arrives as U.S. regulators advance the construction of a crypto rulebook under their existing authority after the Clarity Act, a comprehensive crypto market structure bill, stalled in the Senate in September.
This represents another step in the SEC’s broader initiative to reshape the U.S. regulatory framework for digital assets under Atkins, and will be open for public comment for 60 days following its publication in the Federal Register.
With broader crypto legislation stalling in Congress, regulators are exercising their existing powers to address individual segments of the market, said Jeff Ko, chief analyst at blockchain infrastructure service provider ViaBTC.
“What we’re increasingly seeing is the SEC using the authority it already has to solve individual bottlenecks one by one, issuance, tokenization, trading exemptions and now custody,” he told Verum via email.
The changes could also intensify competition among crypto custodians, potentially reducing the cost and complexity of investing in digital assets, he said, adding that institutional custody has historically been concentrated among a relatively small number of providers.
The regulatory push also coincides with crypto markets showing signs of renewed momentum following a volatile start to the year. Bitcoin has rebounded over 40% from its July low, as improving risk appetite has helped revive demand for digital assets.
The recovery follows a prolonged downturn from late 2025 into the first half of 2026.
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