BELGRADE — Serbian President Aleksandar Vucic inaugurated an assembly factory for Israeli-made drones on Thursday. The facility marks the first operational phase of a joint defense manufacturing venture in Belgrade. "I am very happy that we have reached this level of development," Vucic said.

Vucic toured the facility with Israeli Ambassador Avivit Bar-Ilan during the inauguration event. Journalists were excluded from the ceremony due to the confidentiality of the production process.

Videos posted on Instagram showed Vucic visiting the factory, inspecting a drone, and briefly operating it. He responded to an employee explaining the drone by saying, "It looks even more complicated than I expected."

"Now you can see how the drone is used and how it works," Vucic said. "They go through the windows and chase the opponent, they are incredibly efficient."

The president stated that warheads will be produced in Serbia's Krusik weapons factory as part of the broader defense initiative. The factory will employ approximately 100 people once fully operational. The facility will produce equipment for the Serbian Armed Forces and the armed forces of other countries.

Vucic stated that at least three more factories will be opened across Serbia with Israeli partners. This expansion follows an announcement in April that Serbia would produce combat drones with Israel.

BIRN and It was reported that Serbian arms exports to Israel rose from 1.4 million euros in 2023 to 42.3 million euros in 2024. This increase occurred as Serbia has acquired military equipment from China and Russia while formally seeking membership in the European Union.

Serbia ordered 12 French-made Rafale jets in 2024 in a bid to modernize its fleet as Vucic's government has sought to strengthen its military. Serbia is not a NATO member, maintaining a policy of military neutrality.

Vucic told Nezavisne Dnevne Novine last month that the goal of the factory was to "preserve peace and stability, and to be strong enough to deter all potential aggressors." The president faces a high-stakes, early parliamentary election on Oct. 25 that will test his tight rule following nearly two years of anti-government protests.

Timeline

The Treasury Department published a notice titled "Federal Republic of Yugoslavia (Serbia and Montenegro) Sanctions" on 1995-04-18. Serbia ordered 12 French-made Rafale jets in 2024.

United Nations Special Rapporteur Francesca Albanese said Belgrade remained one of Israel’s “most steadfast and determined allies” during a visit to Serbia earlier this year. Vucic announced in April that Serbia would produce combat drones with Israel.

Serbian President Vucic inaugurated an assembly factory for Israeli-made drones on Thursday. Vucic toured the facility with Israeli Ambassador Avivit Bar-Ilan.

What's New

Previous reporting by BIRN and Haaretz identified Israeli defense firm Elbit Systems as Serbia’s partner in the drone-manufacturing process.

Serbia is not a NATO member.

Why It Matters

The inauguration of the drone factory represents a step in Serbia's military modernization efforts during complex geopolitical alignments. The facility's production capacity for both domestic and international markets indicates a shift toward becoming a regional defense exporter.

The partnership with Israeli firms occurs alongside Serbia's formal pursuit of European Union membership and its acquisition of equipment from China and Russia. This diversification of defense suppliers reflects Belgrade's strategy to maintain military neutrality while strengthening its armed forces ahead of upcoming political challenges.