> ## Content Index > Fetch the complete content index at: https://www.adriadefense.com/llms.txt > Use this file to discover other available public pages before exploring further. # Serbia Says New Elbit Drone Factory Will Target Export Markets - URL: https://www.adriadefense.com/serbia-says-new-elbit-drone-factory-will-target-export-markets/ - Published: 2026-08-17T15:31:51.000Z - Updated: 2026-08-17T15:34:52.000Z - Description: Serbian President Aleksandar Vučić discusses Serbia's joint drone production project with Israel's Elbit Systems - Author: C.P. - Tags: Serbia, Drones, Israel, SEE, Elbit Systems, defense industry, Industry, Aleksandar Vucic, Balkans Serbia plans to use its new drone manufacturing venture with Israel's Elbit Systems as both a domestic military supplier and an export platform for customers unable to purchase unmanned aircraft directly from Israel. President Aleksandar Vučić said the Serbian facility could serve markets seeking Israeli-linked drone technology while buying the finished systems from Serbia. The joint drone factory is scheduled to open between September 15 and 20, 2026, according to Vučić. The project brings together Israeli defense company [Elbit Systems](https://www.elbitsystems.com/?ref=adriadefense.com) and Serbia's state-owned Jugoimport SDPR, expanding a defense relationship that already covers several weapons categories. ### Serbia identifies an export market beyond domestic drone demand Vučić provided additional detail on the factory's intended business model during remarks in Priboj. He indicated that production not required by the Serbian Armed Forces would be offered to foreign customers and said an export market already exists for those aircraft. The Serbian president did not identify the prospective customer or customers. He described the intended market as outside a current war zone but geographically close enough to a conflict that the buyer has an incentive to strengthen its capabilities. More significantly for the factory's export strategy, Vučić indicated that Serbia could supply customers that cannot procure drones directly from Israel. That positions the planned Serbian production line as more than a localization project for the Serbian Armed Forces. It could give the joint venture access to markets where political, regulatory or procurement constraints complicate direct Israeli sales. The exact drone models intended for production have not been officially detailed. Earlier reporting has indicated that the venture will manufacture unmanned aircraft for short- and long-range missions, but publicly available information does not yet establish the final configurations or production volumes. ### Elbit Systems takes majority stake in Serbian drone venture Elbit Systems is expected to control 51% of the joint venture, with Jugoimport SDPR holding the remaining 49%, according to reporting on the project. The ownership structure gives the Israeli company a majority position while providing Serbia with participation through its principal state-owned defense trading and manufacturing group. For Belgrade, the arrangement also includes technology transfer, which Vučić has identified as one of Serbia's expected benefits. Local production could deepen Serbian industrial experience in unmanned aircraft while reducing dependence on complete systems imported from foreign suppliers. The project forms part of a broader expansion of Serbian-Israeli defense cooperation. Serbia has already acquired Israeli systems including the PULS multiple launch rocket system, with Serbian-operated equipment publicly observed in 2025\. ## Sign up for AdriaDefense – CEE & SEE Defense News, Analysis Daily defense news, analysis and industry intelligence from Central and Eastern Europe and Southeast Europe. Subscribe Email sent! Check your inbox to complete your signup. No spam. Unsubscribe anytime. ### Serbia seeks a larger role in the regional drone market The factory could alter Serbia's position in the Balkan unmanned systems market if serial production and exports proceed as planned. Serbia already develops domestic unmanned aircraft, including the Pegaz platform, but cooperation with an established Israeli manufacturer gives Belgrade another route to technology, production expertise and foreign customers. The export component is particularly significant. Rather than limiting the facility to Serbian military requirements, Belgrade is presenting production capacity as part of its wider defense export strategy, with surplus output available to international buyers. That approach also places Serbia within a broader European trend toward expanding local production of unmanned systems following lessons from Ukraine and other recent conflicts. Demand for reconnaissance, strike and other unmanned capabilities has pushed drones from a specialized procurement category toward a recurring requirement for European armed forces. The September opening will provide the next test of the program. Key unanswered questions include the specific aircraft that will enter production, annual manufacturing capacity, the division of work between Elbit Systems and Serbian industry, and the identity of the export customers already referenced by Vučić. --- ### Questions about the Serbia-Elbit Systems drone factory #### When will Serbia's new drone factory open? President Aleksandar Vučić said the joint Serbian-Israeli facility is expected to open between September 15 and 20, 2026\. #### Who owns the Serbian-Israeli drone factory? Reporting on the venture indicates that Elbit Systems will hold 51% and Serbia's state-owned Jugoimport SDPR will hold 49%. #### Will Serbia export drones produced at the factory? Yes. Vučić said aircraft not required by the Serbian Armed Forces would be available for export and indicated that potential foreign demand already exists. #### Which drones will Serbia and Elbit Systems produce? The final models have not been publicly confirmed. Reporting has described plans for short- and long-range unmanned aircraft, but detailed configurations, production capacity and customer-specific versions remain undisclosed.