Barq Group, Elroy Air plan $200mn Chaparral cargo aircraft JV

Barq Group and Elroy Air have signed an initial agreement to establish a $200 million joint venture in Abu Dhabi to manufacture and service the Chaparral autonomous cargo aircraft, marking a significant step in the development of advanced logistics and aerospace capabilities in the Middle East and North Africa (MENA) region.

Announced on January 8, 2026, the proposed joint venture will set up a manufacturing facility in Abu Dhabi to produce the Chaparral, a hybrid-electric vertical take-off and landing (VTOL) unmanned aircraft system designed for middle-mile logistics. The facility will also provide aftermarket services, including maintenance, repair and overhaul (MRO). Production and operations will be subject to the receipt of all required regulatory approvals.

The Chaparral is designed to carry payloads of up to 300 pounds over a range of 300 miles and is powered by a hybrid-electric system that does not require charging infrastructure. According to Elroy Air, the aircraft is intended for use in regions with challenging terrain and limited ground infrastructure. The Chaparral completed what the company described as the world’s first flight of a turbogenerator hybrid-electric aircraft in November 2023.

The joint venture is expected to supply aircraft to commercial and humanitarian customers across the MENA region, where demand for autonomous and resilient logistics solutions is increasing. Barq Group said local manufacturing would help meet regional demand while supporting Abu Dhabi’s broader industrial and technology development goals.

“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 project aligns with Abu Dhabi’s Smart and Autonomous Vehicle Industry (SAVI) cluster objectives and the UAE’s “Make it in the Emirates” initiative. The companies said the venture is expected to contribute to the local economy through the creation of skilled aerospace jobs and the development of a regional supply chain.

The US-based drone maker said demand for the Chaparral in the MENA region has exceeded initial expectations. “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 Andrew Clare, CEO of Elroy Air. He added that Abu Dhabi was selected as the company’s first international manufacturing location due to its strategic position and operating environment.

The joint venture builds on Elroy Air’s recent domestic production partnership with Kratos in the United States. The company said it has a global backlog exceeding 1,500 Chaparral units from logistics and aviation services providers, including FedEx, Bristow and LCI.

According to the official release, initial flight operations in the UAE are planned for 2027 using US-built aircraft, following regulatory approvals and the completion of key flight milestones. Local production at the Abu Dhabi facility is targeted to begin in 2028.

The article was originally published on The STAT Trade Times.