**Serbia Opens Factory for Assembling Israeli-Made Drones**
On September 17, 2026, Serbia inaugurated a new factory dedicated to the assembly of advanced drones manufactured in Israel. The facility, which will cater to the needs of the Serbian military as well as armed forces in other countries, was officially opened by Serbian President Aleksandar Vucic. The factory is a joint venture with an undisclosed Israeli company, although prior reports have suggested that Elbit Systems, a prominent Israeli defense firm, is involved in the project.
During the inauguration, President Vucic emphasized the ambitious plans for the drone assembly operation, stating, “Our plans are huge.” He shared a video of himself touring the facility alongside Israeli Ambassador Avivit Bar-Ilan, highlighting the significance of the venture. Vucic announced that the factory is expected to employ around 100 workers and produce cutting-edge equipment for both the Serbian Armed Forces and other international military clients.
Details regarding the factory's location and the specific Israeli partner were not disclosed, with Vucic citing the “confidentiality of the production process” as the reason for restricting media access during the opening ceremony. However, investigative reports from BIRN and the Israeli newspaper Haaretz have identified Elbit Systems as the likely collaborator in this drone manufacturing initiative.
The establishment of the factory aligns with Serbia's ongoing efforts to bolster its military capabilities. In a previous statement to Serbian media, Vucic articulated that the factory's purpose is to “preserve peace and stability” while ensuring that Serbia remains strong enough to deter potential aggressors. This reflects Serbia's strategic approach to maintaining military neutrality, particularly given its status as one of the few countries in the Western Balkans that is not a member of NATO.
Serbia's military investments have been scrutinized in the context of its arms exports, particularly to Israel. Reports indicate a significant increase in these exports, rising from 1.4 million euros (approximately $1.6 million) in 2023 to an estimated 42.3 million euros (around $48.5 million) in 2024. This surge has drawn attention and concern, especially amid ongoing conflicts in the region.
The relationship between Serbia and Israel has been characterized as robust, with Serbia being described as one of Israel’s “most steadfast and determined allies.” This partnership has faced criticism, particularly in light of the international community's calls for countries to limit arms exports due to the ongoing conflict in Gaza. During a visit to Serbia earlier this year, Francesca Albanese, the United Nations Special Rapporteur on the occupied Palestinian territories, remarked on this alliance, highlighting the complexities of Serbia's military cooperation with Israel.
As Serbia continues to develop its defense capabilities, the opening of this drone assembly factory marks a significant step in its military strategy and its partnerships with foreign defense firms. The implications of this development will likely be closely monitored by both regional and international observers, as Serbia navigates its position in a complex geopolitical landscape.