On 17 September in Belgrade, Serbian President Aleksandar Vučić opened a factory for assembling Israeli-made drones, marking a new phase in Serbia’s cooperation with the Israeli military industry. According to Vučić, the plant is expected to employ around 100 people and manufacture equipment for both the Serbian Armed Forces and the armed forces of other countries.
Journalists, however, were not invited to tour the facility, on the grounds that the manufacturing process is confidential.
“Our plans are massive,” Vučić stated at the factory’s opening, announcing that at least three more factories could potentially be opened in Serbia with Israeli partners.
Behind this venture is Elbit Systems, Israel’s largest private military-technology company and one of the world’s leading arms manufacturers. Precisely because of its close ties to the Israeli military and the use of its systems in Gaza, Lebanon, and the occupied West Bank, Elbit has in recent years become the subject of protests, campaigns to cut business ties, and reports by human rights organisations.
According to a previous joint investigation by BIRN and Israel’s Haaretz, Elbit is slated as the majority partner in the joint drone manufacturing project in Serbia, holding a 51% stake, while 49% would belong to the state-owned Yugoimport-SDPR.
With this move, Serbia is no longer merely a buyer of Israeli military technology; it is becoming part of the supply chain of a company whose drones, ammunition, and other systems have been used in some of Israel’s most controversial military operations in recent years.
From purchasing to production
Serbia and Elbit already have established business relations. Belgrade previously purchased Israeli PULS rocket systems and Hermes 900 drones, while BIRN has reported that cooperation is now expanding to local manufacturing.
At the opening of the factory, Vučić also stated that certain parts of the systems are produced in Serbia, including warheads from the domestic defence industry.
Such a partnership aligns with the accelerated strengthening of Serbia’s drone industry. Over recent months, the government and the President of Serbia have spoken openly about their ambition for the country to become one of the leading manufacturers of uncrewed aerial vehicles in Europe. In late August, following a meeting with the Chinese company Jiangsu Reliance Energy Tech, Vučić said he expected Serbia to build one of the largest drone factories in Europe.
However, the very choice of Elbit as a partner carries a political and reputational burden that goes beyond the military technology itself.
A giant whose revenues grow alongside wars
Elbit Systems employs over 21,000 people across dozens of countries. In 2025, the company reported revenues of around $7.9 billion, while the value of its contracted work at the end of that year reached $28.1 billion. By June 2026, its order book had risen to a staggering $32 billion.
The company manufactures a wide range of military equipment – from uncrewed aerial vehicles, artillery, and rocket systems to electronics, surveillance systems, and fighter jet equipment.
Elbit maintains that it operates lawfully, supplies an internationally recognised state, and forms part of a legitimate defence industry. In a response to Amnesty International, the company rejected allegations linking its business operations to violations of international law.
Critics, however, point out that Elbit is a key supplier to the Israeli armed forces and that its weapons have been used in operations resulting in heavy civilian casualties.
The Elbit drone and the attack on aid workers
One of the most high-profile cases occurred on 1 April 2024, when seven humanitarian workers were killed in an Israeli strike on a World Central Kitchen aid convoy in Gaza.
Human Rights Watch established that three missiles hit three convoy vehicles, even though the vehicles were clearly marked and the humanitarian organisation had previously provided the Israeli military with details of their route. According to available reports, the attack was carried out using an Israeli Hermes 450 drone, manufactured by Elbit Systems.
The Israeli military later acknowledged serious errors in the strike and stated that procedure had been breached.
The Hermes 450 and its larger successor, the Hermes 900, are among Elbit’s best-known products. They can be used for reconnaissance, surveillance, and, in certain configurations, strikes.
The Hermes 900 is precisely among the systems that Serbia previously procured from Israel.
Slain journalist and ammunition from a company acquired by Elbit
Elbit is also mentioned in connection with the killing of Reuters journalist Issam Abdallah in southern Lebanon on 13 October 2023.
Amnesty International concluded that the first shell to strike the group of clearly marked journalists was most likely an Israeli M339 tank shell, manufactured by IMI Systems. IMI has been part of Elbit Systems since 2018. The attack killed Abdallah and wounded six other journalists from Reuters, AFP, and Al Jazeera.
Human Rights Watch assessed that the attack on the journalists was a deliberate assault on civilians and, as such, would constitute a war crime. A subsequent UNIFIL investigation determined that an Israeli tank fired two shells at a group of “clearly identifiable journalists” at a time when there had been no exchange of fire in that sector of the border for more than 40 minutes.
This, however, is not the same as establishing the legal liability of Elbit Systems for the attack. The company was not a party to the military decision to open fire.
Elbit in the UN report
In a report published in 2025, the UN Special Rapporteur on the occupied Palestinian territories, Francesca Albanese, included Elbit among companies that, according to her conclusion, benefit economically from Israeli operations and occupation systems.
In her report, Albanese spoke of an “economy of genocide” and listed dozens of companies from the arms, technology, finance, and construction sectors.
It is important to note, however, that this document represents the findings and legal views of the UN Special Rapporteur, rather than a final binding ruling by an international court against Elbit.
Israel rejects allegations of genocide.
In 2025, Amnesty International also called on states and private companies to sever business ties with Elbit, Rafael, and Israel Aerospace Industries, citing the risk of complicity in violations of international law. Elbit rejected these claims.
(Nova, 20.09.2026)