defense sector

Serbia’s Defense and Dual-Use Manufacturing Sector in 2025

In 2025, Serbia’s defense and dual-use manufacturing sector demonstrated a unique financial framework, distinct from civilian industries and public procurement. The demand for products in this sector was predominantly external, with a significant portion financed through advance payments. This operational model was influenced by regulatory and geopolitical factors that introduced complexities and limitations in execution. The financial outcomes for the sector indicated strong profit margins and cash flow, although scalability was limited and non-financial risks were elevated. The sector encompasses…