Kosovo will begin producing domestically made ammunition in late 2026, after the government approved the expropriation of property of the former agricultural industrial complex KBI Ereniku near Gjakova, to build the country’s first Defence Industrial Zone.

Acting Prime Minister Albin Kurti said the approval “paves the way for the construction of the ammunition factory, the first of its kind in the independent Kosovo”, adding that it will serve the Kosovo Security Force, boost national security and expand defence capacities.

The decision, adopted on November 27, coincided with KSF (Kosovo Security Force) Day, which Kurti described as symbolically important for strengthening the country’s security.

Construction of the factory—covered by a signed contract with Turkish manufacturer MKE—is expected to be completed next year, with production scheduled to begin at the end of 2026.

The wider industrial zone is intended to host additional investors and will support the manufacture of various military products, including military and civilian drones made in Kosovo.

Kurti highlighted significant growth in defence spending during the current mandate, noting that the budget has been quadrupled, the number of soldiers doubled, and more than €430mn worth of weapons and equipment purchased from Nato member states in the last four years.

He pledged over €1bn investments in defence if he secures another mandate following December 28 snap elections.

The KSF now fields Skydagger and TB-2 Bayraktar drones from Turkey, Puma systems and Javelin anti-tank weapons from the US, and is set to introduce an ammunition factory, a ‘Made in Kosovo’ drone production plant, and US-made Black Hawk helicopters.