Barq Group and Elroy Air signed an initial agreement to form a $200 million joint venture for the manufacturing and servicing of autonomous cargo aircraft in the UAE.
Newszy: ABU DHABI, UAE — 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 initial 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 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 region’s diverse geography. Chaparral made history in November 2023 with the world’s first 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 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.
“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.”
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.
About Barq Group
Barq Group is a leading provider of smart mobility and logistics solutions based in Abu Dhabi, UAE. The company specializes in developing and deploying cutting-edge technologies to streamline transport and delivery across the MENA region.
About Elroy Air
Elroy Air is developing industry-first autonomous aircraft systems and cutting-edge software to revolutionize express shipping. Deploying innovative hybrid-electric and autonomous vehicle technologies, their vertical-takeoff-and-landing (VTOL) aircraft transcend traditional airport limitations, unlocking new frontiers in commercial air cargo and humanitarian aid, and military logistics. With facilities in the San Francisco Bay Area, Elroy Air is backed by premier venture capital firms including Diamond stream Partners, Catapult Ventures, Marlinspike Partners, Snow point Ventures, and Shield Capital. Strategic investment from industry giants like Lockheed Martin Ventures and support from visionary angel investors including early Uber executives drive the company’s mission to provide same-day shipping to every person on the planet. For more information, visit elroyair.com.