Barq Group, one of the leaders in smart mobility and logistics solutions in the MENA region, and Elroy Air, the leading U.S.-based developer of autonomous aerial systems for middle-mile logistics, recently announced the signing of an initial agreement. This collaboration between the parties establishes the framework for a joint venture (JV) that will invest USD 200M to build a state-of-the-art manufacturing facility in Abu Dhabi to produce the Chaparral, an autonomous hybrid-electric vertical take-off and landing (VTOL) cargo UAS. This production facility will supply Chaparral systems to commercial and humanitarian customers in the Middle East and North Africa (MENA) region upon receipt of all necessary approvals. The JV will also provide aftermarket services, including maintenance, repair, and overhaul (MRO). By establishing local production capacity, the JV will meet the surging demand for autonomous logistics in a region characterized by rapid expansion and a need for resilient, middle-mile delivery solutions.
The Chaparral is an industry-first autonomous aircraft built to carry 300 lbs of cargo over a 300-mile range. Its hybrid-electric powertrain enables long-range missions without the need for charging infrastructure, making it uniquely suited for the MENA regionโs diverse geography. Chaparral made history in November 2023 with the worldโs first flight of a turbogenerator-hybrid-electric aircraft.
โOur partnership with Elroy Air is a testament to Abu Dhabiโs position as a global leader in the future of mobility,โ said Ahmed AlMazrui, CEO of Barq Group. โThis USD 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 โMake it in the Emiratesโ initiative.โ
The new venture aligns with Abu Dhabiโs Smart and Autonomous Vehicle Industry (SAVI) cluster objectives, solidifying the emirate’s position as a global leader in sustainable transportation. The partnership is expected to contribute significantly to the local economy through the creation of high-value aerospace jobs and the development of a robust regional supply chain.
โDemand for the Chaparral in the MENA region has been immense, surpassing our initial projections and highlighting the urgent need for infrastructure-independent logistics,โ said Dr. Andrew Clare, CEO of Elroy Air. โAbu 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 also 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.โ
Following Elroy Air’s recently-announced domestic US production partnership with Kratos, the new JV will serve a growing backlog of demand for Chaparral, which already exceeds 1,500 units globally from leading logistics and aviation services companies, including FedEx, Bristow, and LCI. Elroy Air recently completed its first autonomous A-to-B cargo delivery with the Chaparral. After the successful completion of critical flight milestones in the United States, along with all necessary approvals, Elroy Air and Barq Group plan to begin initial flight operations in the UAE in 2027 using U.S.-built aircraft, followed by the start of local production in Abu Dhabi in 2028.
