Serbia plans to jointly produce combat drones with Israel as part of efforts to strengthen its military capabilities and expand arms exports, President Aleksandar Vucic said on April 14.

Speaking during a visit to a military unit in Belgrade, Vucic confirmed that Serbia would partner with an Israeli manufacturer to build drones, describing the project as a significant step for the country’s defence industry.

Responding to media reports that Israel could build a drone factory in Serbia, Vucic said he viewed such claims as praise rather than criticism.

“We cannot make drones like Israel can make. I am proud of that, we will do it together, it will be half-half, 50-50,” he told reporters. “This shows that we will have the best drones in this part of the world.”

He did not name the Israeli partner, provide details on the value of the investment, or say when production could begin.

Last week, the Balkan Investigative Reporting Network (BIRN) reported that state-owned arms exporter SDPR was considering opening a drone manufacturing plant with Elbit Systems, potentially with a majority stake held by the Israeli firm.

Serbia has stepped up efforts to modernise its military, which is largely based on ageing ex-Soviet technology, by procuring equipment from a range of suppliers including France, Israel and China.

In early 2025, Belgrade purchased artillery systems and drones from Elbit Systems worth $335mn. In August, it signed a separate deal valued at around $1.6bn for long-range missiles, drones and electronic warfare systems.

Serbia has also agreed to buy Rafale fighter jets from France’s Dassault Aviation to replace its ageing Soviet-made MiG-29 aircraft, and has acquired transport aircraft and helicopters from Airbus, alongside Chinese missile and drone systems.

Serbia also exports ammunition and other military equipment to Israel, reflecting deepening defence ties between the two countries.

According to official data cited by BIRN, Serbian exports of arms and ammunition to Israel surged 42-fold in 2023–2024 to €114mn, despite calls from United Nations officials to halt such transfers amid Israel’s strikes on Gaza.

Serbia, which declares military neutrality, has sought to balance cooperation with Nato and its ambition to join the European Union with longstanding ties to Russia and growing strategic links with China.

The country’s arms industry, a legacy of former Yugoslavia, employs around 20,000 people and is the largest in the Western Balkans, with exports spanning a wide range of international buyers.