On September 25, 2026, reports highlighted questions about the ownership of a Serbian drone factory partnership involving Israeli arms manufacturer Elbit Systems. The venture was initially expected to be a joint partnership with Serbia’s state-owned Yugoimport-SDPR. Business records now show a different corporate structure, raising transparency concerns.
The factory is part of a broader trend of Israel expanding arms production beyond its borders. Elbit has established multiple production sites in countries including Romania.
The strategy is viewed as a way to internationalize Israel’s defense industrial base and build a network of governments and companies with interests in maintaining strong relations. It could also enhance Israel’s strategic periphery beyond the Middle East.