Barq Group has entered into an initial agreement with US-based aerospace firm Elroy Air to establish a joint venture that will invest $200m in a manufacturing facility in Abu Dhabi for autonomous cargo aircraft production.
The proposed plant will focus on manufacturing the Chaparral autonomous aircraft, a hybrid-electric vertical take-off and landing uncrewed system designed for middle-mile cargo logistics. The project, subject to regulatory approvals, is expected to serve commercial and humanitarian operators across the Middle East and North Africa.
Barq Group operates as a smart mobility and logistics solutions provider across the MENA region, while Elroy Air is known for its work in autonomous aerial logistics platforms. Industry publication Avitrader reported that the partnership aims to localise production to support rising regional demand for advanced logistics solutions.
Beyond manufacturing, the joint venture will offer full aftermarket services, including maintenance, repair, and overhaul, enabling a comprehensive regional support ecosystem. Local production is expected to shorten delivery timelines, improve scalability, and enhance supply chain resilience as adoption of autonomous logistics accelerates.
The Chaparral aircraft is capable of transporting payloads of up to 300 pounds over a range of 300 miles. Its hybrid-electric propulsion system enables long-distance operations without reliance on ground-based charging infrastructure, making it suitable for operations in remote or underserved areas. In November 2023, the aircraft completed the world’s first flight of a turbogenerator-powered hybrid-electric system.
Commenting on the agreement, Barq Group Chief Executive Officer Ahmed AlMazrui said the initiative reflects a long-term commitment to Abu Dhabi’s ambition to lead future mobility solutions. He noted that the investment supports the development of a self-sustaining aerospace ecosystem and aligns with the UAE’s “Make it in the Emirates” strategy.
The project is also aligned with Abu Dhabi’s Smart and Autonomous Vehicle Industry cluster and is expected to create skilled aerospace jobs, stimulate regional supply chains, and generate lasting economic value for the UAE.
