Israel and Serbia to Launch Joint Drone Manufacturing Facility in Europe

Serbian President Aleksandar Vučić announced that Serbia will establish a joint drone manufacturing plant with Israel, with the inauguration scheduled between September 15 and 20. Despite Ukraine's own production capabilities, Serbia chose to collaborate with Israel on this project. The agreement between Israeli defense company Elbit Systems and Serbia spans five years and includes the supply of long-range precision artillery rocket systems and a wide array of unmanned aerial combat systems for intelligence and strike missions, ranging from tactical to operational levels, including personal drones.

Elbit will also provide advanced intelligence capabilities such as ISTAR (Intelligence, Surveillance, Target Acquisition, and Reconnaissance), COMINT (Communications Intelligence), SIGINT (Signals Intelligence), and electronic warfare systems. Additional deliveries will include intelligence collection and processing systems, advanced electro-optical and night vision systems, upgrades for combat vehicles, and defense systems. Furthermore, Elbit will supply a comprehensive digital battlefield communication and digitization solution based on the latest software and advanced communication equipment.

This deal follows a series of significant Israeli defense exports to Europe and beyond. In 2023, Israel Aerospace Industries sold the Arrow 3 missile defense system to Germany for approximately $3.5 billion, marking a historic high. Previous major deals include the sale of Barak 8 missile systems to India in 2017 for about $1.6 billion and subsequent naval missile sales. Recently, Greece approved a $3.5 billion air defense package combining Rafael and Israeli Aerospace Industries systems, while Romania purchased the Spyder air defense system for around $2 billion earlier this year.

The Serbian-Israeli drone factory deal reflects Israel's expanding defense cooperation in Europe and the growing demand for advanced unmanned and missile defense technologies.