This article is based on an official press release from Elroy Air and Barq Group.

Barq Group and Elroy Air Announce $200 Million Joint Venture to Manufacture Autonomous Cargo-Aircraft in Abu Dhabi

Barq Group, a leader in smart mobility based in the United Arab Emirates, and Elroy Air, a U.S. developer of autonomous aerospace technology, have signed an initial agreement to establish a joint venture (JV) valued at $200 million. The partnership focuses on establishing a Manufacturing facility in Abu Dhabi to produce the Chaparral, a hybrid-electric vertical take-off and landing (eVTOL) cargo aircraft.

According to the announcement, the joint venture aims to address the critical “middle-mile” logistics gap across the Middle East and North Africa (Middle-East) region. By localizing manufacturing, the companies intend to support the UAE’s strategic push for autonomous transport and industrial self-reliance.

Establishing a Regional Aerospace Hub

The agreement outlines a phased approach to introducing the Chaparral aircraft to the region. Under the terms of the deal, the joint venture will oversee flight operations, manufacturing, and aftermarket services, including maintenance, repair, and overhaul (MRO).

The companies have set a clear timeline for deployment:

• 2027: Initial flight operations are scheduled to begin in the UAE utilizing aircraft manufactured in the United States.
• 2028: Full-scale local manufacturing of the Chaparral is expected to commence at the new facility in Abu Dhabi.

Ahmed AlMazrui, Co-founder and CEO of Barq Group, emphasized the scale of the commitment in a statement regarding the deal:

“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.”

The project aligns with Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster and the national “Make it in the Emirates” strategy, which prioritizes the development of local industrial capabilities.

The Chaparral: Specifications and Capabilities

The Chaparral is designed specifically for middle-mile logistics, the transport of goods between distribution centers or to remote locations, bypassing the need for traditional airports or ground infrastructure. Elroy Air describes the aircraft as a “lift + cruise” hybrid-electric VTOL system.

Key Technical Specifications

According to technical data released by Elroy Air, the Chaparral features:

• Payload Capacity: 300 lbs (136 kg).
• Range: 300 miles (482 km).
• Propulsion: A hybrid-electric powertrain utilizing a turbine generator to charge batteries in-flight.
• Infrastructure Requirements: A landing zone of approximately 50 square feet (4.6 square meters).

A critical feature for the MENA region is the aircraft’s independence from electric charging infrastructure. Because the turbine generator charges the batteries during flight, the Chaparral does not require ground-based charging stations, enabling operations in remote deserts, offshore platforms, or mountainous terrain.

Dr. Andrew Clare, CEO of Elroy Air, highlighted the regional suitability of the aircraft:

“Demand for the Chaparral in the MENA region has been immense… Abu Dhabi is the ideal strategic hub for our first international manufacturing footprint.”

AirPro News Analysis

The “middle mile” is historically the most inefficient segment of the supply chain in the MENA region due to challenging geography and sparse infrastructure. Traditional cargo aircraft require runways that do not exist at many remote industrial sites, while ground transport is often slowed by indirect routes through deserts or archipelagos.

By deploying a VTOL system that requires zero airport infrastructure, this joint venture directly targets these inefficiencies. Furthermore, the hybrid powertrain distinguishes the Chaparral from purely electric competitors, which may struggle in regions lacking robust electrical grids at every delivery point. This move also positions Barq Group and Elroy Air to compete with other emerging players in the region, such as Dronamics, which has also secured agreements in the UAE.

Company Backgrounds and Market Position

Barq Group is the Abu Dhabi-based smart mobility arm of the larger conglomerate, distinct from other entities sharing the name in the region. Since launching its mobility division in April 2023, Barq has focused on eco-friendly transport solutions, previously signing agreements for ground-based electric delivery vehicles. This JV marks a significant expansion into aerial logistics.

Elroy Air, headquartered in South San Francisco, was founded in 2016. The company reports a commercial order backlog exceeding $3 billion, representing over 1,000 aircraft, with interest from major global customers including FedEx and Bristow Group.

Frequently Asked Questions

What is the value of the joint venture?
The agreement represents a $200 million investment to build a manufacturing facility and establish operations in Abu Dhabi.

When will the aircraft begin flying in the UAE?
Flight operations using U.S.-built aircraft are scheduled to begin in 2027, with locally manufactured aircraft entering service in 2028.

Does the Chaparral require charging stations?
No. The aircraft uses a hybrid-electric powertrain where a turbine generator charges the batteries in-flight, eliminating the need for ground charging infrastructure.

Sources

• Elroy Air Press Release