Barq Group Elroy Air venture will invest $200m in an Abu Dhabi facility to produce Chaparral autonomous cargo aircraft for the MENA region

Barq Group Chief Executive Officer Ahmed AlMazrui and Elroy Air Chief Executive Officer Dave Merrill today signed an initial agreement to form a joint venture that will invest $200m in a new manufacturing facility in Abu Dhabi to produce the Chaparral autonomous cargo aircraft.

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The agreement brings together Barq Group, a regional provider of smart mobility and logistics solutions, and California based Elroy Air, a developer of autonomous aerial systems for middle mile logistics.

The proposed facility will manufacture the Chaparral hybrid electric vertical take off and landing uncrewed aircraft system designed specifically for cargo operations.

Subject to regulatory approval, the joint venture will supply Chaparral systems to commercial and humanitarian customers across the Middle East and North Africa.

The partnership will also provide aftermarket services including maintenance, repair and overhaul, creating an integrated regional support capability.

Executives said local manufacturing would reduce delivery times, improve scalability and strengthen supply chain resilience as demand for autonomous logistics grows.

The Chaparral aircraft can carry a 300 pound payload over 300 miles, with a hybrid electric powertrain that allows long range missions without dependence on charging infrastructure.

Elroy Air said the aircraft completed the world’s first flight of a turbogenerator hybrid electric system in November 2023.

Ahmed AlMazrui said the agreement represented a strategic commitment to Abu Dhabi’s role in shaping the future of mobility and supporting a self sustaining aerospace ecosystem aligned with the Make it in the Emirates initiative.

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Officials said the project would support Abu Dhabi’s Smart and Autonomous Vehicle Industry cluster and create high value aerospace jobs while developing a regional supply chain.