Serbia has announced plans to establish a military drone manufacturing facility with Israeli defense giant Elbit Systems, expanding Belgrade’s domestic capacity to produce unmanned aerial systems (UAS).
Serbian President Aleksandar Vučić disclosed the move during a joint press conference with Ukrainian President Volodymyr Zelensky.
“Serbia will open a drone factory together with the Israelis,” Vučić stated, adding that Ukrainian representatives would be invited to the facility’s inauguration in mid-September.
Vučić also clarified the scope of his discussions with Zelensky during the visit. “We did not discuss any military cooperation today,” Vučić said. “What will happen when the war ends is another matter.”
Joint Venture Approach
The manufacturing facility will be located in Simanovci near the Serbian capital and operated as a joint venture between Elbit and Serbia’s state enterprise Yugoimport SDPR.
Under the agreement, Elbit will hold a 51 percent majority stake, while Yugoimport will retain the remaining 49 percent.
The facility is expected to produce short-range attack drones and advanced long-range UAS for the Serbian Armed Forces, while also supporting Serbia’s ambitions to expand its defense exports.
Analysts said the plant represents another step in the growing defense partnership between the Balkan government and Elbit.
In August 2025, the two sides finalized a five-year, $1.63-billion contract covering precision artillery and rocket systems, reconnaissance and strike UAS, electro-optical systems, and battlefield digitization technologies.
The agreement followed Belgrade’s purchase of $335 million worth of Elbit’s PULS artillery systems and Hermes 900 combat drones as the country moves away from Soviet-era equipment toward Western and Israeli defense technology.
