In a strategic move to capture the burgeoning market for autonomous logistics, Abu Dhabi’s Barq Group and U.S.-based Elroy Air have signed a foundational agreement to establish a joint venture. The JV will invest $200 million to construct a state-of-the-art facility in Abu Dhabi for the manufacturing and servicing of Elroy Air’s Chaparral autonomous cargo aircraft.
The Chaparral is a hybrid-electric vertical take-off and landing (VTOL) drone designed for middle-mile logistics, capable of carrying 300 pounds of cargo over 300 miles without requiring ground-based charging infrastructure. This makes it particularly suited for the vast and varied landscapes of the Middle East and North Africa (MENA) region. The facility will supply these systems to commercial and humanitarian clients across MENA and provide comprehensive aftermarket services.
“This partnership underscores Abu Dhabi’s ambition to be a global nexus for future mobility,” said Ahmed AlMazrui, CEO of Barq Group. “This is a commitment to fostering a complete aerospace ecosystem in the UAE, directly responding to massive regional demand and aligning with the ‘Make it in the Emirates’ vision.”
For Elroy Air, this marks its first international manufacturing expansion. “Abu Dhabi is the ideal strategic hub,” stated Dr. Andrew Clare, CEO of Elroy Air. “Local production with Barq will drastically reduce lead times for our regional customers and ensure the aircraft are built for their operational environment.”
The venture aligns with the objectives of Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster and is expected to generate high-skilled jobs and stimulate the local supply chain. It follows significant demand for the Chaparral, with a global backlog exceeding 1,500 units from companies like FedEx.
The plan outlines initial flight operations in the UAE using U.S.-built aircraft starting in 2027, with local production at the new Abu Dhabi facility commencing in 2028, pending necessary regulatory approvals. This initiative positions the UAE at the forefront of the next generation of resilient, autonomous delivery solutions.
