735 Million Dirhams for the Autonomous Cargo Aircraft Production Project in the UAE

The Barq Group, a company specializing in smart mobility solutions and logistics in the Middle East and North Africa, has announced a preliminary agreement for collaboration with American firm Elroy Air, which develops autonomous aerial systems for middle-mile logistics services. This partnership aims to launch a joint venture with an investment of $200 million (735 million AED) in Abu Dhabi.

The objective of this project is to establish an advanced manufacturing facility for the “Chaparral,” an electric hybrid unmanned cargo aircraft capable of vertical takeoff and landing (VTOL). The facility is expected to provide aircraft systems to commercial clients and individuals in the Middle East and North Africa, along with after-sales services including maintenance, repair, and engine refurbishment.

The Chaparral is regarded as the first electric hybrid aircraft of its kind, capable of transporting payloads of up to 300 pounds over distances of 300 miles, enabling long-range missions without the need for shipping infrastructure, thus making it well-suited to the region’s geographical diversity.

Ahmed Al Mazrouei, CEO of Barq Group, stated, “Our partnership with Elroy Air highlights Abu Dhabi’s position as a global hub for the future of mobility. This $200 million investment underscores our commitment to developing a sustainable, integrated aviation ecosystem in the UAE, responding to the significant demand from logistics providers in the region. Through this collaboration, we are redefining the methods of goods transportation while supporting the ‘Made in the UAE’ initiative.”

Dr. Andrew Clare, CEO of Elroy Air, added, “The demand for the Chaparral in the region has exceeded our expectations, reflecting an urgent need for logistics solutions that do not rely on traditional infrastructure. Abu Dhabi serves as an ideal strategic hub for our first international industrial expansion. By partnering with Barq Group, we ensure that the aircraft are manufactured in the same environment where they will operate, reducing delivery times and enhancing operational efficiency.”

Initial flight operations in the UAE are slated to begin by 2027, utilizing aircraft produced in the United States, with local production set to commence in Abu Dhabi in 2028.

Business

Similar news

Emirates NBD Reports Quarterly Profit of 6.4 Billion with 3% Growth

حقق بنك الإمارات دبي الوطني صافي ربح 6.4 مليارات درهم في الربع الأول من العام الجاري بنمو نسبته...

Emsteel Announces Stability in Its Prices for Steel and Construction Materials

The Emsteel Group, a leading manufacturer of steel and integrated construction materials, has announced its commitment to supporting...

Dubai Taxi Acquires 600 New Taxi License Plates

Dubai Taxi Corporation, a leader in comprehensive mobility solutions in the city, has announced its acquisition of 600...

Bank and Real Estate Stocks Boost Dubai Market at the Start of Trading

The indicators of local financial markets exhibited mixed performance at the outset of trading on Thursday. The Dubai...