Goran Basarac, President of the Management Board of Agencija ALAN, highlighted the major opportunities and challenges for Croatia’s defense industry in an interview on Bloomberg Adria TV’s Zoom In.
 
“The Croatian defense industry has had a strong foundation since the Homeland War and today offers a wide range of products that are competitive on the global market. Companies such as HS Produkt, known for its pistols and assault rifles, Šestan-Busch with ballistic equipment, DOK-ING with unmanned demining systems, as well as newer firms like Orqa with unmanned aerial systems and Shadow Nautics with patrol vessels, represent the backbone of Croatia’s defense portfolio. New companies are also emerging in the fields of machine learning, digital forensics, and cybersecurity, further expanding the scope of Croatia’s defense industry,” emphasized Goran Basarac, President of the Management Board of Agencija ALAN.
 
There are, however, segments where Croatia is not yet competitive. The country does not produce helicopters, aircraft, or long-range missile systems. Entering markets dominated by established global producers is not commercially viable. It is more realistic for Croatian companies to become part of their supply chains—providing electronic components, cybersecurity solutions, or other specialized subsystems. That is precisely where major opportunities lie for domestic businesses.
 
Agencija ALAN facilitates the international market access of Croatian companies by co-financing their participation in international fairs and by managing export control procedures—no product from the military list can be exported without authorization from the competent state authorities. State support has been excellent, especially in recent times, as the defense industry has been recognized as a strategically important sector. Nevertheless, each manufacturer must primarily rely on its own resources, while efficient resolution of export procedures remains a significant advantage.
 
“There are numerous support programs for the defense industry, but the market ultimately dictates its development—each manufacturer competes by continuously developing its products. My vision for the future of the Croatian defense industry is that, at the national level, we develop at least around ten new large companies engaged not only in defense production but also in dual-use technologies. The goal is a cascading growth of Croatia’s defense industry. Potentially, this could lead to the creation of a major industrial group in which Croatian companies would develop cutting-edge dual-use technologies, ensuring long-term competitiveness in the global market,” concluded Goran Basarac, President of the Management Board of Agencija ALAN.
 
The Croatian defense industry stands before a historic opportunity. The technology and innovation are already in place, and success will depend on the agility of companies and their ability to navigate, together with the state, the complex but promising European defense market.

Watch the full Zoom In episode on Bloomberg Adria TV.