Business14 April, 20261 min read
Serbia and Israel Launch Joint Venture to Produce 80,000 Combat Drones
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Serbia and Israel plan a joint drone-manufacturing venture. Elbit Systems provides technology; SDPR is Serbia's partner.
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Serbia-Israel Drone Venture
Serbia and Israel have agreed to establish a joint venture to produce military drones, with the partnership structured as a 50-50 collaboration. President Vucic announced the plan, saying we cannot produce drones as Israel can, but I am proud that we will do it together.
The project aims to manufacture up to 80,000 drones within roughly two years. Elbit Systems is expected to hold a 51 percent stake, with Serbia's SDPR controlling the remainder.
Strategic Modernization
The drone venture is part of Serbia's broader effort to modernize its military. Serbia has already purchased Elbit's PULS artillery systems and Hermes drones for $335 million. The country has also bought France's Rafale jet fighters and cargo aircraft and helicopters from Airbus.
Controversy and Criticism
The partnership with Elbit Systems comes amid growing international scrutiny. Elbit has faced criticism for its role in Israeli military operations in Gaza and the West Bank. Serbia's arms exports to Israel have skyrocketed 42-fold since 2023.
Regional Defense Trends
Serbia's drone initiative fits within a broader regional trend of Eastern European countries building drone capabilities. Poland's WB Group Warmate program has been supplied to Ukraine. Ukraine represents the most accelerated case, with wartime drone production built around co-production.