Barq Group and Elroy Air have agreed to form a US$200m (c. £150m) joint venture to manufacture and service autonomous cargo aircraft in the UAE.
The Abu Dhabi–based facility will produce the Chaparral, an autonomous hybrid-electric vertical take-off and landing (VTOL) system for middle-mile logistics.
Built to carry 300 lb of cargo over a 300-mile range, the Chaparral can conduct long-range missions without the need for charging infrastructure, making it uniquely suited to the geography of the Middle East and North Africa (MENA).
Upon receipt of all necessary approvals, the joint venture will supply both commercial and humanitarian customers in the MENA region. It will also provide aftermarket services, including maintenance, repair and overhaul.
“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. “The massive demand we are seeing from logistics providers across MENA makes it clear that local production is the only way to scale effectively.”
Andrew Clare, CEO of Elroy Air, added that producing the Chaparral in Abu Dhabi not only reduces lead times for regional customers but also ensures the aircraft are built in the same environment in which they will operate.
Elroy Air and Barq Group plan to begin operations in the UAE in 2027 with US-built aircraft, with local production expected to start in Abu Dhabi in 2028.
