UAE-Linked Serbian Company Supplying Weapons to Israel Amid Gaza Conflict

Serbia’s state-owned weapons manufacturer, Yugoimport-SDPR, has recently been revealed to be selling millions of dollars in armaments to Israel. This development underscores the decades-old ties that Serbia has with the UAE. According to a report by Balkan Insight, in 2024, Yugoimport-SDPR exported at least $17.1 million worth of weapons to Israel. These exports were facilitated through Israeli military planes as well as civilian aircraft, indicating a robust and multifaceted trade route for these arms.

Historically, Serbia was a major arms supplier during the Cold War era when it was still part of Yugoslavia. Despite its traditionally close ties to Russia, Serbia has diversified its arms trade portfolio, selling ammunition to Ukraine valued at $858 million, according to a recent Financial Times report. In 2021 alone, Serbia’s arms exports were valued at around $1.2 billion, showcasing the country’s significant role in the global arms trade.

Serbia’s arms trade interests, however, are not limited to Europe. In the aftermath of the global financial crisis, cash-strapped Serbia sought billions in loans from the UAE in 2013. As it courted Emirati investment, it also pursued arms deals. This resulted in the announcement of the first arms deal between Serbia and the UAE in 2013, which included the export of armored personnel carriers to the UAE and the bilateral development of a guided surface-to-surface missile. At the time, this deal was valued at roughly $214 million.

The relationship between Serbia and the UAE continued to deepen, with the UAE making substantial investments in various sectors in Serbia. Notably, the UAE invested in Air Serbia, although the Serbian state is now set to take over the Emirati share of the state carrier. In 2022, SDPR signed an agreement with UAE President Sheikh Mohamed bin Zayed al-Nahyan – then crown prince of Abu Dhabi and deputy commander of the UAE’s armed forces – to sell “a significant amount of ammunition” to the Gulf monarchy, according to a press release from the Serbian defense ministry.

Beyond the arms deals, the UAE, along with Saudi Arabia and Qatar, has made new investments in Serbian tourism through a fund linked to Jared Kushner, former senior advisor and son-in-law of former US president, Donald Trump. This indicates a broadening of the UAE’s investment portfolio in Serbia beyond the arms industry.

Serbia’s state-dominated arms industry has also made significant deals with Saudi Arabia. In 2018, Balkan Insight reported that Serbian arms maker, Krusik, which has close links to SDPR, sold 60, 80, and 120-millimeter caliber mines, along with grenades at steeply discounted prices, to a Saudi Arabian company. Investigative journalism site Arms Watch later found that Serbian arms ended up in the hands of the Islamic State militant group in Yemen. This revelation highlights the complex and often controversial paths that arms sales can take once they leave the country of origin.

Saudi Arabia and the UAE have been heavily involved in the conflict in Yemen. They launched a military offensive against the Houthis after Yemen descended into civil war in 2014. The Saudi and UAE-led coalition has conducted thousands of air strikes on Yemen, aiming to dislodge the Houthis. However, these strikes have resulted in thousands of civilian deaths and have contributed to a major humanitarian crisis in the region.

The entanglement of Serbia’s arms trade with the geopolitical dynamics of the Middle East, particularly with nations like the UAE and Saudi Arabia, underscores the far-reaching impact of these transactions. As Serbia continues to navigate its position in the global arms market, its alliances and business deals reflect broader international relationships and conflicts.