Barq Group and Elroy Air have signed a $200 million JV to manufacture and service autonomous cargo aircraft in Abu Dhabi.
The partnership will establish a facility to produce Elroy Air's Chaparral hybrid-electric vertical take-off and landing (VTOL) aircraft for commercial and humanitarian customers in the Middle East and North Africa.
The JV will also provide aftermarket services, including maintenance, repair, and overhaul (MRO).
“The massive demand we are seeing from logistics providers across MENA makes it clear that local production is the only way to scale effectively,” said Barq Group CEO Ahmed AlMazrui.
The JV plan to begin flight operations in the UAE in 2027 using US-built aircraft followed by the start of local production in Abu Dhabi the following year.