Serbia has signed a $1.63 billion agreement with Israeli defense firm Elbit Systems Ltd. for advanced weapons and surveillance technologies, according to Israeli news outlet Calcalist. 

Elbit announced the deal last week without disclosing the buyer. The news came shortly before the company reported second-quarter revenues of nearly $2 billion, a 21% increase from the same period in 2024.

The five-year contract reportedly includes long-range precision artillery rockets and a range of unmanned aerial systems, from reconnaissance drones to loitering munitions and personally operated tactical models. 

Many of these platforms are designed with artificial intelligence to support autonomous operations.

According to Calcalist, Serbia will also receive intelligence and electronic warfare capabilities, including signals and communications intelligence systems, advanced electro-optical and night-vision devices, and combat vehicle upgrades. 

The deal marks Serbia’s largest known arms purchase from Israel and is part of its push to modernize forces long reliant on Russian and Chinese weapons. It comes as Israeli arms exports face heightened scrutiny amid ongoing military operations in Gaza.