Barq Group, the leader 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, today announced the signing of an agreement.
This collaboration between the parties establishes the framework for a joint venture (JV) that will invest $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 characterised 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 region’s diverse geography. Chaparral made history in November 2023 with the world’s first flight of a turbogenerator-hybrid-electric aircraft.
Ahmed AlMazrui, CEO of Barq Group, said: “Our partnership with Elroy Air is a testament to Abu Dhabi’s position as a global leader in the future of mobility.
“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 new venture aligns with Abu Dhabi’s 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.
Dr. Andrew Clare, CEO of Elroy Air, said: “Demand for the Chaparral in the MENA region has been immense, surpassing our projections and highlighting the urgent need for infrastructure-independent logistics.
“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 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.”