Serbia’s President Aleksandar Vucic on September 17 opened a factory for assembling Israeli-made drones, part of Belgrade's efforts to modernise its armed forces and expand domestic defence production.

The plant will employ about 100 people and supply drones to the Serbian military as well as the armed forces of other countries, Vucic said in a post on Instagram.

"Our plans are huge," Vucic said, adding that Serbia and its Israeli partners planned to open at least three more factories across the country.

Vucic said journalists were not invited to tour the facility because of the confidentiality of the production process. A video accompanying his announcement showed several drone models being assembled at the plant, but he gave no further details about its location, investment or production capacity.

Vucic confirmed in April that Serbia would jointly produce combat drones with Israel as part of a broader drive to strengthen its military capabilities and increase arms exports.

Israeli defence company Elbit Systems holds a 51% stake in the joint venture, with Serbia's state-owned arms producer Jugoimport SDPR holding 49%, according to documents obtained by BIRN and Haaretz and reported earlier this year.

The companies plan to produce two types of drones for short- and long-range missions, according to the reports.

In April, Vucic said Serbia could not produce drones at the same level as Israel on its own and would therefore develop them jointly with Israeli partners.

Serbia has stepped up military spending and procurement in recent years, buying equipment from France, Israel, China and other suppliers as it seeks to replace ageing Soviet-era systems.

Belgrade purchased artillery systems and drones from Elbit worth about $335mn in early 2025 and signed a separate deal with the company in August 2025 worth about $1.6bn for long-range missiles, drones and electronic warfare systems.

Serbia has also ordered 12 Rafale fighter jets from France's Dassault Aviation for about €2.7bn, while acquiring aircraft and helicopters from Airbus and missile and drone systems from China.

The country formally maintains a policy of military neutrality and is seeking European Union membership, while retaining longstanding ties with Russia and developing closer strategic and economic links with China.