Serbia's President Aleksandar Vucic confirmed Tuesday that the country will produce military drones in a joint agreement with an unnamed Israeli company.
Vucic had previously announced that a drone factory would be built in Serbia "with a foreign partner", but it was not until Tuesday that he told media the choice of an Israeli firm was obvious.
"Of course, because they make them best," he said, while describing the venture as a 50-50 cooperation.
Early this month, investigative outlet BIRN and Israeli newspaper Haaretz jointly reported that the Israeli defence firm Elbit Systems would build a drone factory in Serbia.
Elbit Systems has faced criticism over its role in Israel's military operations in Gaza and the West Bank.
According to reports, the factory will be held by Elbit Systems and a Serbian state-owned company, SDPR, and will produce short and long-range drones.
So far, neither the Israeli firm nor the Serbian authorities have commented on the reports.
Serbia has faced criticism in recent months over reports that its arms exports to Israel increased dramatically after the war in Gaza began.
During a visit to Serbia last month, UN Special Rapporteur on the occupied Palestinian territories Francesca Albanese said Belgrade was one of Israel's "most steadfast and determined allies".
In a June 2025 report, she also named Elbit Systems among companies profiting from what she described as the "ongoing genocide" in Gaza.
Vucic has repeatedly defended his country's arms exports and previously described cooperation with Israel as excellent.
"They sell us weapons, we sell them weapons, and this will continue."