Serbia to Launch Joint Drone Production With Elbit Systems

Serbia is preparing to open a joint drone production facility with Israeli defense company Elbit Systems in the near future.

Haaretz reported this in a joint investigation with BIRN.

The joint venture comes amid a sharp increase in Serbian arms exports to Israel and major contracts to supply artillery, rockets, and modern UAVs produced by Elbit.

In March 2026, Serbian President Aleksandar Vučić announced the imminent launch of a new drone production plant. “For serious UAVs — the most serious in the world.” He added the plant could be ready as early as April and would operate as a joint venture, but did not name the partner.

A BIRN and Haaretz investigation found the plant will be jointly owned by Elbit Systems and SDPR, Serbia’s main state-owned arms exporter.

The facility will be located in the Šimanovci industrial zone, about 30 km west of Belgrade, according to documents obtained by BIRN and Haaretz. Elbit will hold a 51% stake, while Serbia will hold 49%.

Elbit Systems and SDPR plan to produce two types of drones: short-range strike drones and long-range UAVs capable of operating at altitudes of up to 6 km. One source said the new UAV will surpass the capabilities of Serbia’s Pegasus model.

“That’s the point, because we can’t achieve this on our own. The idea is to acquire knowledge and technology, and Serbian engineers will work on the project,” the source said.

Another source said engineers from Serbian aircraft manufacturer UTVA, part of SDPR, will also participate in the project.

Since 2024, Serbian arms exports to Israel have risen 42-fold to €114 million in 2025, despite restrictions imposed by many European countries. SDPR handles most deliveries.

At the end of 2025, at the EDEX 2025 arms exhibition in Cairo, Serbia’s Yugoimport-SDPR presented the Gavran 145 loitering munition designed for deep strikes.

The drone has a stated range of 150 km and endurance of up to three hours. It is offered with electric, gasoline, or turbojet engines.

The warhead weighs 15 kg. It is offered with high-explosive fragmentation and tandem shaped-charge warheads. The anti-tank variant is reported to penetrate more than 1 m of steel armor behind reactive armor.