Serbia to Open Israeli Drone Factory in September 2026

Serbia plans to open a drone factory with an Israeli partner around September 15-20, President Aleksandar Vučić said on August 8 in Belgrade. The planned facility would expand Serbia's domestic unmanned aircraft production through cooperation with Israel's defense industry, following months of announcements about a joint manufacturing project. 

Vučić disclosed the updated timeline during a joint press conference with Ukrainian President Volodymyr Zelensky. He said Serbia and Ukraine had not discussed military cooperation during their August 8 meeting, separating the Israeli drone project from speculation about possible Serbian-Ukrainian drone production. 

September target gives Serbia's drone project a new timeline

The September target provides the clearest schedule yet for the planned Serbian-Israeli production facility. Vučić had confirmed in April that Serbia intended to manufacture combat drones jointly with Israel, describing the arrangement at the time as a 50-50 partnership designed to transfer technology and manufacturing knowledge to Serbia. 

The April announcement did not identify the Israeli manufacturer or provide an investment value and firm opening date. Reporting at the time linked the project to Israeli defense company Elbit Systems and Serbia's state-owned Yugoimport SDPR. Reuters reported that Elbit Systems had previously been identified as the prospective Israeli participant, while Associated Press reporting cited plans for Yugoimport SDPR and Elbit Systems to establish the production operation. 

Publicly reported ownership details have not been fully consistent. Vučić described the broader Serbian-Israeli cooperation in April as a 50-50 arrangement, while earlier reporting on the planned company indicated a 51% Elbit Systems stake and a Serbian minority holding. 

The Serbian government has not publicly confirmed in the August 8 announcement which drone models the facility will manufacture, its production capacity, investment value or precise location.

Elbit Systems already supplies Serbia with Israeli UAVs

The factory would deepen an existing Serbian relationship with Israel's defense sector rather than establish one from scratch.

Serbia has already acquired the Elbit Systems PULS modular rocket artillery system and Hermes 900 unmanned aerial vehicle. The Serbian Ministry of Defense publicly displayed both systems during the Grand Power of Unity military parade in Belgrade in September 2025. 

Reuters reported in April that Serbia had agreed to a $335 million package involving PULS systems and Hermes drones in early 2025, followed by another $1.6 billion acquisition covering missiles, drones and electronic warfare equipment in August 2025. 

Local production would therefore represent a shift from importing Israeli unmanned systems toward establishing manufacturing capacity inside Serbia.

Serbia expands domestic unmanned systems production

Serbia has simultaneously invested in its own unmanned aircraft programs. The Serbian Armed Forces have fielded or tested systems including Komarac 2, Osica, Shadow-25 and Shadow-50, while additional platforms continue to move through domestic development and production. 

At a Serbian Armed Forces demonstration in June 2026, Vučić said the Vihor and Gavran systems had entered serial production. The same event included Komarac drones and the Israeli-developed Lanius system. 

A joint factory with an Israeli manufacturer could add another layer to this industrial base by bringing foreign technology and production processes into Serbia. The extent of technology transfer, local component manufacturing and integration with existing Serbian programs remains undisclosed.

For Serbia, the project also fits a procurement policy that increasingly combines domestic production with systems sourced from multiple foreign suppliers. Belgrade has acquired Israeli unmanned systems and rocket artillery, Chinese air defense equipment and French Rafale combat aircraft while continuing to maintain its policy of military neutrality. 

Serbia-Israel drone factory: key questions

When will Serbia open the Israeli drone factory?

President Aleksandar Vučić said on August 8 that Serbia expects the factory to open around September 15 or September 20, 2026. 

Which Israeli company is linked to the Serbian drone factory?

Earlier reporting has identified Elbit Systems as the Israeli company linked to the project and Yugoimport SDPR as the Serbian participant. The August 8 announcement referred to cooperation with Israel but did not identify the company by name. 

What drones will Serbia manufacture with Israel?

The specific models have not been officially confirmed. Earlier reporting described plans for combat drone production, but Serbia has not publicly released a definitive product list for the factory. 

Is Serbia planning joint drone production with Ukraine?

Vučić said Serbia and Ukraine did not discuss military cooperation during President Volodymyr Zelensky's August 8 visit to Belgrade. He instead pointed to the planned factory with Israel when questioned about military cooperation and drone production. 

The September opening target now creates a near-term milestone for Serbia's defense industry. Confirmation of the Israeli industrial partner, ownership structure, production site and first drone types will determine the scale of the project's contribution to Serbia's domestic unmanned systems sector.