Serbian President Aleksandar Vučić confirmed on August 9, 2026, that his country will inaugurate a joint drone manufacturing plant with Israeli defense electronics prime Elbit Systems between September 15 and September 20. The facility, in the Šimanovci industrial zone about 30 km west of Belgrade, will be majority-owned by Elbit (51%) with Serbia's state-owned arms company Yugoimport-SDPR holding the remaining 49%.
Two Product Lines Out Of The Gate
According to Elbit and Serbian officials, the joint venture will initially manufacture two categories of unmanned aircraft: short-range strike drones optimised for tactical operations, and long-range UAVs capable of operating at altitudes up to 6 kilometres for ISR and precision-strike missions. Elbit will bring platform designs from its Hermes and personal-drone families along with mission-system integration know-how.
A Follow-On To Serbia's $1.63 Billion Elbit Contract
The joint venture builds on a five-year, $1.63 billion contract signed between Elbit Systems and Serbia in August 2025 covering precision long-range artillery rocket systems, unmanned aerial systems, ISTAR capabilities, electro-optics, night-vision systems, battlefield digitisation and comms. The Serbia agreement ranks among the largest single-country deals ever booked by an Israeli defense prime, trailing Israel Aerospace Industries' 2023 Arrow 3 sale to Germany and its Barak 8 sales to India.
A Regional Push By Israeli Defense Primes
The Šimanovci plant is the latest sign of intensifying European demand for Israeli defense systems as governments rearm. Related coverage: AeroVironment and Eyeonix form Greek loitering-munitions JV, Ondas wins Israel's Digital Bat tactical attack-drone tender and DHS counter-UAS IDIQ awards.
Reporting based on coverage from Globes, The Times of Israel and The Jerusalem Post.