Full Breakdown
Serbia to Inaugurate Joint UAV Factory with Israeli Elbit Systems
8/10/2026, 11:27:30 AM
Core Event: Planned Mid-September Opening
Serbian President Aleksandar Vucic announced that a new factory for unmanned aerial vehicles (UAVs) will be inaugurated in mid-September, with the ceremony expected to occur between September 15 and September 20. The plant will be built in Simanovci, about 30 kilometres west of Belgrade, and will be jointly owned by Israel’s Elbit Systems (51 percent) and Serbia’s state-owned defence firm Jugoimport SDPR (49 percent).
Background & Context: Prior Defence Deals and Technology Transfer
The factory follows a series of high-value contracts between Serbia and Elbit Systems. In 2024, Serbia signed agreements worth $335 million for PULS artillery rockets and Hermes 900 combat drones. A larger arrangement was concluded in August 2025, valued at $1.6 billion, covering additional drones, long-range missiles and electronic-warfare systems. The partnership also includes the supply of advanced ISTAR (intelligence, surveillance, target acquisition and reconnaissance) equipment, night-vision and electro-optical systems, and solutions for military digitisation and encrypted communications.
Timeline of Key Milestones
- March 7 2026 – Vucic first announced the intention to open a “very serious” drone factory, suggesting production could start as early as April.
- April 2026 – The anticipated April opening did not materialise; the partner’s identity remained undisclosed.
- August 2025 – Serbia confirmed the $1.6 billion contract with Elbit Systems.
- September 15-20 2026 (scheduled) – Planned inauguration window for the joint UAV facility.
Data & Statistics
- The factory will produce two drone models: a short-range, high-payload aircraft with rotating wings, and a longer-range, faster model with a flight ceiling above 6 kilometres, intended to surpass Serbia’s existing Pegaz drone.
- Engineers from Utva, the aircraft manufacturer owned by SDPR, will participate in development, emphasizing technology transfer rather than mere assembly.
- Serbia’s arms exports to Israel have risen 42 times since 2023, reaching €114 million by the end of 2025, primarily routed through SDPR.
- Elbit Systems reported revenue of $7.9 billion in the most recent fiscal year, a 16.3 percent increase from the prior year.
Official Statements & Responses
- Vucic told reporters at the Palace of Serbia, “In September we are opening a drone factory with the Israelis,” and added that Ukrainian representatives would be invited to the ceremony.
- Elbit Systems declined to comment on the factory, issuing a brief “no comment” response to media inquiries.
- Serbia’s Foreign Ministry described UN Special Rapporteur Francesca Albanese’s criticism of Elbit as “inappropriate” and an interference in Serbia’s internal affairs.
Verbatim Quotes
- “In September we are opening a drone factory with the Israelis,” — Serbia Alexander Vucic, serbian president
