Serbia signs deal with Israel for joint combat drone production

Serbia has moved ahead with its plan to jointly produce combat drones with Israel as part of a wider military modernisation drive, President Aleksandar Vucic said on Tuesday.

The project will be developed through a joint venture between Serbia’s state arms exporter Yugoimport SDPR and Israel’s Elbit Systems , with reports indicating Elbit will hold a 51% stake . The planned facility is expected to be located in the industrial zone near Belgrade and will produce both short-range armed drones and long-range unmanned aerial systems.

Vucic said Serbia aims to build some of the most advanced UAV capabilities in the region, acknowledging that Israel remains far ahead in drone technology. He added that the systems would be highly effective against armoured targets, while also enabling technology transfer and training of Serbian engineers.

Recent updates confirm the project is moving into implementation, with Serbia also planning to establish new military units equipped with attack drones , including loitering and long-endurance UAV systems for frontline deployment.

The initiative is part of a broader defence expansion strategy. Serbia has significantly increased military spending, modernised its arsenal, and signed major procurement deals, including 12 Dassault Rafale in 2024, alongside acquisitions from China, Russia, and Israel.

Belgrade continues to pursue EU membership while maintaining military neutrality and balancing ties with NATO, Russia, and China. Officials say the drone programme marks a shift toward digitised, drone-centric warfare and stronger domestic defence production capacity.