UAE-based Barq Group and US aerospace firm Elroy Air have signed a $200 million joint venture agreement to manufacture and service autonomous cargo aircraft in the United Arab Emirates, marking a major step in the region’s advanced air mobility ambitions.
The partnership will establish a state-of-the-art manufacturing and services facility in Abu Dhabi, dedicated to producing Elroy Air’s Chaparral—an autonomous, hybrid-electric vertical take-off and landing (VTOL) cargo unmanned aircraft system (UAS). The Chaparral is designed to transport medium-weight cargo over long distances without the need for runways, combining helicopter-like flexibility with airplane-level efficiency.
Under the agreement, the facility will supply Chaparral systems to commercial logistics operators, humanitarian organizations, and government users across the Middle East and North Africa (MENA). In addition to manufacturing, the joint venture will provide aftermarket services, including maintenance, repair, and overhaul (MRO), supporting long-term fleet operations in the region.
Industry analysts view the project as strategically significant for the UAE, positioning Abu Dhabi as a regional hub for autonomous cargo aviation. By enabling faster, lower-emission, and infrastructure-light logistics, the Chaparral platform is expected to address critical gaps in remote delivery, emergency response, and time-sensitive supply chains, while supporting the UAE’s broader push into advanced manufacturing and next-generation mobility.
