Abu Dhabi, UAE – In a major step to establish regional leadership in autonomous logistics, Barq Group, a MENA smart mobility leader, and U.S.-based Elroy Air have signed a foundational agreement for a $200 million joint venture. The JV will manufacture and service Elroy Air’s Chaparral autonomous cargo aircraft in Abu Dhabi.
The venture centers on constructing a state-of-the-art facility to produce the Chaparral, a hybrid-electric vertical take-off and landing (VTOL) drone designed for middle-mile logistics. Capable of carrying 300 pounds of cargo over 300 miles without charging infrastructure, the Chaparral is uniquely suited for the MENA region’s vast distances. The facility will supply aircraft to commercial and humanitarian customers across the region and provide comprehensive aftermarket services.
This partnership directly responds to soaring regional demand for resilient, infrastructure-independent delivery solutions. By localizing production, the JV aims to drastically reduce lead times and build an aircraft tailored to the local operating environment.
“More than a manufacturing deal, this $200 million investment is a commitment to building a self-sustaining aerospace ecosystem in the UAE,” said Ahmed AlMazrui, CEO of Barq Group. He emphasized the move supports both market demands and the UAE’s “Make it in the Emirates” industrial strategy.
The JV aligns with the goals of Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster, aiming to boost the local economy through high-skilled job creation and supply chain development.
“Abu Dhabi is the ideal strategic hub for our first international manufacturing footprint,” said Dr. Andrew Clare, CEO of Elroy Air. “Producing locally with Barq Group allows us to meet immense regional demand effectively.”
The Chaparral, which completed the world’s first flight of a turbogenerator-hybrid-electric aircraft in late 2023, has a global backlog exceeding 1,500 units from companies like FedEx. Following necessary approvals, the partners plan to begin UAE flight operations with U.S.-built aircraft in 2027, with local Abu Dhabi production slated to start in 2028.
