UAE - Mubahser: MENA-focused Barq Group, a leader in smart mobility and logistics solutions, and US-based Elroy Air signed an agreement to establish a joint venture (JV), with investment totaling $200 million.
Both parties will join forces to build an advanced manufacturing facility in Abu Dhabi to produce the Chaparral, an autonomous hybrid-electric vertical take-off and landing (VTOL) cargo UAS, according to a press release.
Upon obtaining the required approvals, the production facility will supply Chaparral systems to commercial and humanitarian customers in the MENA region.
The JV will also provide aftermarket services, including maintenance, repair, and overhaul (MRO). It will meet the increasing demand for autonomous logistics in a region characterized by rapid expansion and a need for middle-mile delivery solutions.
Ahmed Al Mazrui, CEO of Barq Group, commented: “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.”
In line with Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster objectives, the venture anchors the emirate's position as a global leader in sustainable transportation.
The partnership will contribute to boosting the local economy by securing high-value aerospace jobs and developing a robust regional supply chain.
This follows 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.
On his part, Andrew Clare, CEO of Elroy Air, said: “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.”
Meanwhile, Elroy Air and Barq Group plan to commence flight operations in the UAE in 2027, deploying US-built aircraft followed by the start of local production in Abu Dhabi in 2028.
