Serbia and Israel’s Elbit set to open joint combat drone factory in September

Sharon Wrobel is a tech reporter for The Times of Israel

Serbia plans to open a manufacturing plant with Israeli defense giant Elbit Systems in mid-September to jointly produce drones to modernize its defenses and bolster exports of unmanned systems and military equipment.

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Speaking at a press conference during a visit by Ukrainian President Volodymyr Zelensky to Belgrade, Serbia’s populist President Aleksandar Vučić said over the weekend that Serbia will open a drone factory with Israelis around September 15 or September 20. Elbit declined to comment on further details when contacted by The Times of Israel.

As part of the partnership, Elbit will hold a 51 percent majority stake in the UAV plant with Serbia’s SDPR state weapons manufacturer holding the remainder. The facility, planned for the Simanovci industrial zone near Belgrade, is expected to include short-range attack combat drones, alongside the development and production of advanced unmanned systems designed to operate at longer ranges, and advanced electronic warfare systems.

The Balkan country ‌has been buying modern weapons and equipment from Europe, Israel and China as it replaces Soviet-era technology and adapts its military strategy to conform with modern warfare.

Serbia has become one of Israel’s closest allies in Europe, though it is not in the European Union or NATO. In April, Vučić first announced plans to jointly produce combat drones with Israel. In the same month, Foreign Minister Gideon Sa’ar and Serbian Foreign Minister Marko Đurić announced, during a meeting in Jerusalem, a free trade agreement and the launch of a new strategic dialogue.

The joint venture comes after Elbit in August last year inked a five-year $1.64 billion defense contract with Serbia for the supply of its long-range precision strike artillery-rocket systems and AI-powered unmanned aerial vehicles, including personally operated drones for tactical and operational use.

The contract also includes defense products equipped with Elbit’s advanced intelligence, surveillance, target acquisition and reconnaissance, known as ISTAR, as well as communications and signal intelligence systems, and advanced electro-optical and night-vision systems.

In early 2025, Serbia bought Israel’s PULS artillery ‌systems and Hermes drones manufactured by Elbit Systems for $335 million.

Reuters contributed to this report.

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