US$200m JV to build autonomous cargo aircraft in Abu Dhabi

Barq Group and Elroy Air have signed an initial agreement to form a joint venture that will invest US$200 million in a new manufacturing facility in Abu Dhabi to produce the Chaparral autonomous cargo aircraft. The partnership brings together Barq Group, a prominent provider of smart mobility and logistics solutions across the MENA region, and Elroy Air, a US-based pioneer in autonomous aerial systems for middle-mile logistics.

The proposed facility will manufacture the Chaparral, a hybrid-electric vertical take-off and landing (VTOL) uncrewed aircraft system designed specifically for cargo operations. Subject to regulatory approvals, the joint venture will supply Chaparral systems to commercial and humanitarian customers across the Middle East and North Africa. In addition to production, the venture will offer aftermarket support, including maintenance, repair and overhaul services, creating a fully integrated regional capability.

By establishing local manufacturing capacity, the partners aim to address rapidly growing demand for autonomous logistics solutions in MENA, a region characterised by fast economic expansion, complex geography and an increasing need for resilient middle-mile delivery networks. Local production is expected to improve scalability, reduce lead times and strengthen supply chain reliability.

The Chaparral is positioned as an industry-first autonomous aircraft capable of carrying a 300-lb payload over a range of 300 miles. Its hybrid-electric powertrain enables long-range missions without reliance on charging infrastructure, making it particularly well suited to remote and infrastructure-light environments common across the region. The aircraft achieved a significant milestone in November 2023, completing the world’s first flight of a turbo generator hybrid-electric aircraft.

Ahmed AlMazrui, Chief Executive Officer of Barq Group, described the agreement as a strategic commitment to Abu Dhabi’s role in shaping the future of mobility. He said the investment goes beyond manufacturing, supporting the creation of a self-sustaining aerospace ecosystem in the UAE and aligning with the national “Make it in the Emirates” initiative. According to AlMazrui, strong demand from logistics providers across MENA has made local production essential to scaling operations effectively.

The joint venture also aligns with the objectives of Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster, reinforcing the emirate’s ambition to be a global leader in sustainable and autonomous transport. The project is expected to generate high-value aerospace jobs, stimulate the development of a regional supply chain and deliver long-term economic benefits to the UAE.