Serbia is preparing to launch drone production on its territory in cooperation with Israeli company Elbit Systems, the Telegram channel “Serbian Economist” reported, citing a joint investigation by BIRN and Haaretz.
According to the published information, the new enterprise will be established as a joint structure between Elbit Systems and Serbia’s state-owned company Yugoimport SDPR. The Israeli side is expected to receive a 51% stake in the project, while 49% will remain with SDPR.
The facility is expected to produce two types of UAVs — for short-range and long-range missions. According to available information, the production site may be located in the industrial zone of Šimanovci, about 30 km west of Belgrade.
Serbian President Aleksandar Vučić said publicly on March 7, 2026, that the country would get its “first factory of serious drones,” noting that the project was being implemented with a foreign partner from Israel and could start as early as April. At that time, however, the partner’s name was not officially disclosed.
According to the authors of the investigation, the new deal brings military-technical cooperation between Serbia and Israel to a new level. Data cited by Haaretz/BIRN show that over the past two years Serbian arms exports to Israel increased 42-fold and reached EUR114 million in 2025, with a significant share of those deliveries going through SDPR.
For Serbia, the project is important not only as another defence production facility, but also as a channel for gaining access to advanced technologies. One of the sources cited by Haaretz and BIRN said the new UAVs are expected to outperform Serbia’s Pegaz model, while engineers from UTVA are also expected to be involved in the project alongside SDPR.
