Serbia opens factory to assemble Israeli-made drones

Serbia has opened a factory to assemble advanced Israeli-made drones, in a move that adds to the country's expanding defence production capacity and its growing military ties with Israel. President Aleksandar Vucic inaugurated the facility on Thursday, according to the supplied report, and said it will supply both the Serbian Armed Forces and armed forces in other countries. The opening comes as Belgrade continues to present military investment as part of a policy of neutrality and deterrence.

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Vucic said the plant will employ around 100 workers and produce state-of-the-art equipment. He also said at least three more factories will be opened across Serbia with Israeli partners, describing the plans as extensive. The president shared video from the site with Israeli Ambassador Avivit Bar-Ilan, but did not disclose the factory's location or the name of the Israeli company involved.

He said journalists were excluded because of what he called the confidentiality of the production process. The report says previous reporting by investigative outlet BIRN and the Israeli newspaper Haaretz identified Elbit Systems as Serbia's partner in the drone-manufacturing process. Elbit has previously faced criticism over its role in operations in Gaza and the West Bank.

The same report says Serbia has also faced scrutiny over arms exports to Israel, with those exports rising from 1.4 million euros in 2023 to 42.3 million euros in 2024. Those figures suggest a sharp increase in defence trade between the two countries over a short period. The factory opening matters because it points to a deeper industrial and strategic relationship at a time when Serbia is investing heavily in its military.

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Serbia is one of the few countries in the Western Balkans that is not a NATO member, and the report says it has justified military spending as a way to preserve neutrality. Vucic said last month that the goal of the factory was to preserve peace and stability and to be strong enough to deter potential aggressors. That framing places the drone project within Serbia's wider effort to build domestic capacity while maintaining room for cooperation with foreign partners.

The development also comes against the backdrop of international scrutiny over weapons flows linked to the war in Gaza. During a visit to Serbia earlier this year, United Nations Special Rapporteur on the occupied Palestinian territories Francesca Albanese said Belgrade remained one of Israel's most steadfast and determined allies. The report says that criticism has intensified calls for countries to restrict weapons exports, while Serbia continues to expand its own defence industry.

The new factory therefore has implications not only for domestic production, but also for Serbia's external military relationships and export ambitions. What remains unclear is the exact location of the plant, the identity of the Israeli partner, and when production will begin at scale. It is also not clear which foreign armies may receive the drones, or how the project will affect Serbia's broader arms trade.

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