ABU DHABI - Abu Dhabi-based manufacturer Monarch Holding and Chinese company EHang Holdings, a leading autonomous aerial vehicle (AAV) technology platform company, have signed a partnership agreement to establish the first facility in the Middle East and North Africa to manufacture and operate sustainable, electric-powered aircraft and drones for passengers and cargo transportation in Abu Dhabi.

The announcement aligns with Abu Dhabi Industrial Strategy’s initiatives, including Industry 4.0’s innovative technologies, new circular economy regulatory framework, green policies, and incentives to continue its transition towards a smart, circular, and sustainable economy.

The cooperation aims to manufacture sustainable electric aircraft and drones, establish a command-and-control centre to manage urban air mobility autonomously and build infrastructure, vertiports (take-off and landing platforms), and facilities for operating electric aircraft and drones, as well as provide opportunities to qualify and train Emirati talent.

The project contributes to revitalising markets and supporting local products by facilitating the flow of goods and merchandise to sales outlets, ports, and airports, enhancing trade.

The partnership will help establish an advanced infrastructure for vertiports and an autonomous flight management system operated by artificial intelligence, supporting sustainable and electric-powered commercial aircraft and drones, through cooperation with local entities, enabling Abu Dhabi to adopt urban aviation technologies.

The project, which focuses on improving smart and sustainable mobility, will enhance Abu Dhabi’s position as the smartest city in the Middle East and North Africa.

Rashed Abdulkarim Al Blooshi, Undersecretary of Abu Dhabi Department of Economic Development (ADDED), said, “Abu Dhabi is focusing on knowledge-based, innovation-driven economic sectors. The Industrial strategy is a major factor in achieving our objectives as its programmes aim to enhance and adopt methods and technologies of industry 4.0, circular economy, talent development, ecosystem enablement, homegrown supply chain, and value chain development.

“This partnership reflects the high level of our infrastructure for advanced and smart industries and developed legislative and regulatory frameworks in the emirate, which provides an attractive environment for innovations and investments in advanced industries and technological transformation. To ensure the best conditions for investors and entrepreneurs, ADDED has launched many initiatives to enhance ease of business and trade, financing, and attracting foreign direct investment.”

Hussain Ali Alomaeirah, Founder and Chairman of Monarch Holding, said, “This venture will support the future of the transportation sector in Abu Dhabi in line with the government vision to enhance the fundamentals of the smart city. It provides a new cargo and passenger transportation concept, utilising advanced technologies, artificial intelligence, and sustainable energy with zero carbon emissions.

Monarch is establishing partnerships with the world’s best manufacturer of electric aircraft, and a designer and consulting company for urban air mobility, which develops and operates the most advanced UAM systems in the world, he added.