Croatia has a major opportunity to expand its economy through the growth of its defence industry, Deputy Prime Minister and Defence Minister Ivan Anušić said on November 4, highlighting the sector’s potential amid rising European security concerns.

Speaking at the Croatian Defence Industry 2025 – European Opportunities, Dual-Use Technologies and Global Security conference in Zagreb, Anušić said that global demand for defence equipment had surged since Russia’s invasion of Ukraine, creating new openings for Croatia’s high-tech manufacturers.

“The defence industry is now ‘in’ in the world, but five or six years ago it was practically unrecognisable and unprofitable,” Anušić said. “I believe that at this moment Croatia has a huge opportunity to develop its economy and industry in the direction of the defence industry.”

Anušić cited several Croatian firms as examples of innovation and competitiveness in global defence markets, including HS Produkt, Končar, Đuro Đaković, Šestan-Busch and Orqa. He also pointed to DOK-ING, whose robotic systems are exported as far as South Korea.

“Our products are high-quality, innovative, and in some segments leading in Europe and the world,” he said, adding that Croatia is a leading nation, alongside the Netherlands and Latvia, in the European “Drone Coalition”. 

The minister said Croatia’s defence industry, though small, was becoming more capable and increasingly integrated with partners worldwide, including within Nato and the European Union.

Anušić also confirmed that basic military training would be reintroduced early next year to strengthen national defence readiness.

Economy Minister Ante Šušnjar said that investment in defence must directly benefit the broader economy.

“Every investment in defence must contribute to new jobs, new industries, high technologies, and the development of Croatian industry and economy,” Šušnjar said. “We are working on a strategy to better connect the defence industry with EU funding sources for further progress and economic growth.”

Zrinka Ujević, head of the European Commission’s Representation in Croatia, said the EU was committed to accelerating joint European projects and mobilising industrial and financial resources to strengthen Europe’s defence base, as quoted in a Croatian government statement.