Source | Barq Group

Smart mobility and logistics solutions company Barq Group (Doha, Qatar) and Elroy Air (South San Francisco, Calif., U.S.) are collaborating to establish the framework for a joint venture (JV) that will invest $200 million to build a state-of-the-art manufacturing facility in Abu Dhabi to produce the Chaparral, Elroy’s composite autonomous hybrid-electric vertical takeoff and landing (VTOL) cargo UAS.

This production facility will supply Chaparral systems to commercial and humanitarian customers in the Middle East and North Africa (MENA) region upon receipt of all necessary approvals. The JV will also provide aftermarket services, including maintenance, repair and overhaul (MRO). By establishing local production capacity, the JV will meet the surging demand for autonomous logistics in a region characterized by rapid expansion and a need for resilient, middle-mile delivery solutions.

“This $200 million investment is more than a manufacturing agreement; it is a commitment to building a self-sustaining aerospace ecosystem in the UAE,” says Ahmed AlMazrui, CEO of Barq Group.

The Chaparral is built to carry 300 pounds of cargo over a 300-mile range. Its hybrid-electric powertrain enables long-range missions without the need for charging infrastructure, making it suited for the MENA region’s diverse geography. 

Following Elroy Air’s domestic U.S. production partnership with Kratos, the new JV will serve a growing backlog of demand for Chaparral which already exceeds 1,500 units globally from logistics and aviation services companies including FedEx, Bristow and LCI. Elroy Air recently completed its first autonomous A to B cargo delivery with the Chaparral.

After the successful completion of critical flight milestones in the U.S., along with all necessary approvals, Elroy Air and Barq Group plan to begin flight operations in the UAE in 2027 using U.S.-built aircraft followed by the start of local production in Abu Dhabi in 2028.