The strengthening of defense ties between Israel and Serbia is moving up a gear: Serbian President Aleksandar Vučić announced this week that the country is expected to inaugurate a new factory for the production of drones and unmanned systems in mid-September.
The ambitious project is being established in strategic cooperation with Israeli defense technology giant Elbit Systems. The move marks a significant milestone in building Serbia’s independent capabilities in the field of UAVs (unmanned aerial vehicles), a sector that has become critical on modern battlefields.
According to details of the deal disclosed by the president, ownership of the new factory will be divided between Elbit Systems, which will hold 51%, and Serbian state-owned company SDPR, which will hold the remaining 49%. The facility’s production plan includes short-range armed drones, alongside the development and production of advanced unmanned systems designed to operate at longer ranges.
The cooperation goes beyond the sale of equipment and includes technology transfer and local manufacturing on European soil, strengthening Elbit’s position as a global systems provider that integrates into the local industries of its customers.
The announcement of the factory came at an interesting political moment, during the visit of Ukrainian President Volodymyr Zelenskyy to Belgrade. As reported by Reuters, Serbia is in the midst of a wide-ranging process to modernize its armed forces. The country is working to replace outdated military equipment from the Soviet era with modern Western-made weapons systems. As part of this trend, Belgrade is purchasing a range of military equipment from across Europe, China and Israel, including Rafale fighter jets from France and advanced helicopters manufactured by Airbus.
The business relationship between the two countries is not new. About a year ago, Israeli business newspaper Globes reported that Elbit Systems had signed a $1.63 billion contract with a country whose identity was initially not disclosed, but which was later revealed to be Serbia.
The five-year contract is extensive and includes the supply of artillery rockets, UAVs for intelligence-gathering and strike missions, as well as advanced night-vision and electro-optical systems. In addition, Elbit is providing Serbia with technological solutions for the digitization of its military and encrypted military communications systems, which form the backbone of the new, digital Serbian military.
The establishment of the factory in September is tangible evidence of the depth of the relationship and of Belgrade’s confidence in Israeli technology.