Albania aims to revive domestic defence industry as it hosts top Nato officials

Albania aims to revive domestic defence industry as it hosts top Nato officials
Albanian Prime Minister Edi Rama (left) with Nato Secretary General Mark Rutte. / Nato
By bne IntelliNews September 17, 2025

Albania is moving to reinvigorate its domestic defence sector and expand its role in regional security, Prime Minister Edi Rama and Defence Minister Pirro Vengu said during high-level meetings this week with Nato officials and partner countries.

Albania plans to invest into defence production and strategic infrastructure, with the aim of supporting both national security and Nato operations amid growing geopolitical tensions in Europe and the Middle East.

Speaking alongside Dutch Prime Minister Mark Rutte, Rama said Albania was “restarting the renaissance” of its defence industry, including plans for a new military port in Porto Romano and participation in the EU SAFE programme, which supports security and defence initiatives across Europe.

“Albania wants to do more. We are very keen to discuss the further work that needs to be done to make possible the new military port and to strengthen our defence industrial base,” Rama said.

Vengu outlined five priorities for Albania’s defence sector at the 28th Adriatic Charter Chiefs of Staff (SHBA-A5) conference in Tirana, which was attended by Nato’s Supreme Allied Commander Europe (SACEUR), General Alexus Gregory Grynkewich, who is on his first official visit to Albania.

“Our goal is to position Albania as a reliable hub for the defence industry, supply chains, military connectivity and interoperability, military mobility throughout Southeast Europe and the Adriatic region, and in the space of undeniable strategic importance for Atlantic security,” Vengu said, according to a defence ministry statement. 

He said that Albania will focus on expanding its defence industry, modernising its armed forces, investing in critical infrastructure, increasing defence budgets, and strengthening interoperability with allies through training and operations.

The meetings highlighted Albania’s growing contributions to Nato missions. Vengu noted that Albania participates in the Kosovo Force (KFOR), supports Nato Forward Land Forces in Latvia and Bulgaria, and continues to provide military and political assistance to Ukraine.

Albania, which ceased domestic arms production after the collapse of its communist regime, has now authorised its state-owned company KAYO to form a joint venture with a private partner to produce Nato-standard armoured vehicles, including for export. 

Czech defence firms are also reportedly exploring cooperation in ammunition, airspace control systems, and AI-based surveillance and cybersecurity tools. KAYO will hold a minimum 45% stake in the joint venture and contribute over 20,000 square meters of real estate for the project.

The government’s efforts to revive the defence sector coincide with broader regional security initiatives. Albania hosted Bulgarian Defence Minister Atanas Zapryanov earlier this week to discuss joint infrastructure and industrial projects, including Corridor VIII and the Porto Romano port, aimed at improving mobility for Nato forces. The two ministers reaffirmed their commitment to international missions, including Nato Forward Presence in Bulgaria and KFOR in Kosovo.

Rutte, speaking alongside Rama, praised Albania’s commitment to Nato. “Albania is doing a lot when it comes to Ukraine… You are really punching above your weight. Albania can always count on Nato, and Nato can count on Albania,” Rutte said, according to a Nato statement.

Albania’s push to modernise its armed forces and expand domestic production is part of a broader trend in Southeast Europe, where countries are increasingly seeking to strengthen defence capabilities and industrial independence in response to regional instability.

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