Abu Dhabi, United Arab Emirates — Barq Group, a leading provider of smart mobility and logistics solutions in the MENA region, and Elroy Air, a US-based company specializing in autonomous aerial systems for half-mile logistics, announced the signing of an initial agreement to establish a joint venture (JV) valued at $200 million.

The JV envisions the construction of a state-of-the-art manufacturing facility in Abu Dhabi dedicated to the production of the Chaparral, a hybrid-electric VTOL autonomous cargo aircraft. The facility will supply commercial and humanitarian customers in the Middle East and North Africa, pending regulatory approvals, and will include MRO (maintenance, repair, and overhaul) services.

The Chaparral is designed to carry up to 136 kg of cargo with a range of 480 km, utilizing a hybrid-electric propulsion system that eliminates the need for charging infrastructure—a key advantage for the diverse geography of the MENA region. In November 2023, the aircraft made the world’s first flight of a turbogenerator-powered hybrid-electric aircraft.

The initiative aligns with the “Make it in the Emirates” strategy and the objectives of Abu Dhabi’s Smart and Autonomous Vehicles Industry (SAVI) cluster, reinforcing the emirate’s position as a global hub for advanced air mobility and sustainable transport. It is also expected to drive the creation of high-value jobs, the development of a regional supply chain, and the scalability of autonomous logistics.

Global demand for the Chaparral has already exceeded 1,500 units, with interest from companies such as FedEx, Bristow, and LCI. Following the completion of flight milestones and regulatory approvals, flight operations in the United Arab Emirates are planned to begin in 2027 with aircraft manufactured in the United States, followed by the start of local production in Abu Dhabi in 2028.

Source and Credits Elroiy Air

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