Page 16 - bne IntelliNews monthly magazine April 2025

16 I Companies & Markets bne April 2025
state and EU candidate to obtain investment-grade status.
Since then, another major credit rating agency, Fitch, has raised concerns about the ongoing political instability
in Serbia, saying this could delay reforms and project implementation. However, its latest report indicates that the impact of the current political situation on the country's policy mix will be minimal.
Fitch estimates that Serbia will experience robust investment- led economic growth, underpinned by the Leap into the Future – Serbia Expo 2027 plan, which includes €18bn of investment. While €1.2bn will be specifically allocated to the Expo itself, likely for event-related infrastructure, facilities
and operations, the remaining investment will be directed to road and rail, industrialisation, and other infrastructure projects, which could lead to increased interest among investors.
Commenting on Serbia's reputation among investors during the current wave of protests, Šoškić believes that while some investors who have spoken with the current political establishment in Serbia may view the public uprising as an added uncertainty in their investment decisions, this should not be a concern for credible and long-term investments. This is particularly true since such investments should not be tied to the existing group of politicians, as the turnover of politicians is a normal occurrence in democratic countries.
Attack drone JV formed by Turkey’s Baykar, Italy’s Leonardo to target $100bn market in Europe
bne IntelliNews
Turkey's Baykar and Italy's Leonardo announced on March 6 that they are forming a joint venture that will turn out attack drones.
Their confirmation of the deal comes with defence companies seeking to quickly capitalise on the massive surge in European defence spending expected in response to the US sharply reducing its commitment to the defence of Ukraine and Nato allies in Europe. It is also in line with a growing conviction
in Turkey that it will be indispensable in helping to build up European defence and security and in the wake of calls from US defence manufacturers made to “government efficiency” czar Elon Musk for the scrapping of bureaucracy that they say hinders their potential on the world military drone market.
The unmanned aerial vehicle (UAV) manufacturing venture will focus on a European drone market in defence that the two companies have estimated at $100bn over the next 10 years.
"Europe has a gap in unmanned technologies... and
in complicated times like the one we are living in it is fundamental to guarantee global security," Leonardo chief executive Roberto Cingolani told a press conference, as reported by Reuters.
Baykar’s chairman Selcuk Bayraktar, who is a son-in-law
of Turkish President Recep Tayyip Erdogan, was reported as saying that the Italy-headquartered JV would offer an "opportunity to build aerial supremacy", given the expected key role that military drones would play in the future.
www.intellinews.com
Baykar’s best-known drone is the Bayraktar TB2, which in recent years has featured in conflicts including those in Ukraine, Libya, Nagorno-Karabakh and parts of Africa.
The JV will use the two companies' existing facilities. Leonardo and Baykar, meanwhile, have already made contact with their country’s armed forces, looking for immediate market demand.
In December, Baykar bought Italian aircraft producer Piaggio Aerospace.
Baykar produces both light and heavy drones. It is also developing autonomous jet-engine powered varieties, as well as autonomous air-to-air combat drones. Some military hardware experts predict a future in which such drones entirely end the need for piloted fighter jets.
It is thought that the JV's first product could be available in around 18 months. It will be based on the Bayraktar Akinci (“Raider”), a high-altitude, heavy lift drone developed by Baykar. The firm’s ambitions to make the Akinci the first UAV capable of launching a cruise missile have previously been reported by defence trade media.
Reuters also quoted Cingolani as saying the new venture would not attempt to rival Europe's Medium-Altitude Long- Endurance (MALE) drone being developed with Airbus and Dassault Aviation.