Abu Dhabi, UAE, 8 January 2026: Barq Group and Elroy Air have confirmed an initial agreement to form a joint venture focused on autonomous cargo aircraft manufacturing and support services in Abu Dhabi.
Under the proposed structure, the partners intend to invest US$200 million in a local facility to produce the Chaparral hybrid-electric VTOL cargo aircraft. Subject to regulatory approval, the plant will serve customers across the Middle East and North Africa and will also provide maintenance, repair, and overhaul services. The approach aims to address regional demand for reliable middle-mile logistics through local capacity.
The Chaparral aircraft can transport 300 pounds of cargo over distances of up to 300 miles. Its hybrid-electric design allows extended missions without charging infrastructure, which suits remote and mixed-terrain routes. The aircraft achieved a milestone flight in November 2023 as the first turbogenerator hybrid-electric aircraft to fly.
“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 venture aligns with Abu Dhabi’s Smart and Autonomous Vehicle Industry cluster and is expected to support economic growth through skilled jobs and a stronger regional supplier base.
“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.”
Elroy Air has secured interest for more than 1,500 Chaparral aircraft worldwide from logistics and aviation groups, including FedEx, Bristow, and LCI. The partners plan to start initial UAE flight operations in 2027 using aircraft built in the United States, with manufacturing in Abu Dhabi scheduled to begin in 2028 following approvals.
