Barq Group and Elroy Air have signed an initial agreement that sets the terms for a planned joint venture to manufacture and service autonomous cargo aircraft in Abu Dhabi.
The agreement provides the framework for a joint venture that plans to invest US$200 million in a manufacturing facility to build the Chaparral, a hybrid-electric vertical take-off and landing cargo aircraft. Once approvals are in place, the facility will supply aircraft to commercial and humanitarian operators across the Middle East and North Africa. The venture will also offer maintenance, repair, and overhaul services. Local production is intended to support rising demand for middle-mile logistics in the region.
Chaparral is designed to carry 300 pounds of cargo over a range of 300 miles. Its hybrid-electric system allows long-distance flights without the need for charging infrastructure, which suits varied operating conditions across the region. In November 2023, the aircraft completed the first recorded flight of a turbogenerator hybrid-electric aircraft.
“Our partnership with Elroy Air is a testament to Abu Dhabi’s position as a global leader in the future of mobility,” said Ahmed AlMazrui, CEO of Barq Group. “This $200 million investment is more than a manufacturing agreement; it is a commitment to building a self-sustaining aerospace ecosystem in the UAE. The massive demand we are seeing from logistics providers across MENA makes it clear that local production is the only way to scale effectively. Together, we are redefining how goods move across the region while supporting the ‘Make it in the Emirates’ initiative.”
The proposed venture supports Abu Dhabi’s Smart and Autonomous Vehicle Industry cluster goals and is expected to add skilled aerospace roles while strengthening the local supply chain.
“Demand for the Chaparral in the MENA region has been immense, surpassing our initial projections and highlighting the urgent need for infrastructure-independent logistics,” said Dr. Andrew Clare, CEO of Elroy Air. “Abu Dhabi is the ideal strategic hub for our first international manufacturing footprint. By producing the Chaparral locally with Barq Group, we are not only reducing lead times for our regional customers but ensuring the aircraft is built in the same environment where they will operate. We are thrilled to partner with a visionary leader like Ahmed AlMazrui to bring this next-generation capability to the UAE.”
Elroy Air’s current global order pipeline exceeds 1,500 aircraft, with interest from logistics and aviation services groups such as FedEx, Bristow, and LCI. After recent autonomous flight milestones in the United States and required approvals, the companies plan to begin flight operations in the UAE in 2027 using US-built aircraft, followed by local production in Abu Dhabi from 2028.