BERLIN, GERMANY / RankWire.AI / – In a significant move to strengthen economic ties, the United Arab Emirates is set to channel €40 billion into Germany, targeting key sectors such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. This substantial investment plan was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions concerning the new economic commitments. A notable part of the package allocates €10 billion to Bavaria, granting the region a prominent share of the overall initiative.
At the core of the announced investment program is digital infrastructure. The UAE and Germany have outlined plans for advanced data centres, aiming for an aggregate capacity of approximately 1 gigawatt. Both nations emphasized artificial intelligence and industrial technology as focal points of the package. Germany committed to facilitating the conditions necessary for the development of these data-centre projects. The announcements broaden the scope of economic agreements introduced during the visit and incorporate new commitments across the fields of technology, energy, and industrial growth.
A significant component of the visit involved the signing of numerous business agreements. Companies from both countries finalized 29 accords and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will serve as a link between public institutions and private sector entities involved in bilateral investments. Both nations also launched a Strategic Dialogue encompassing trade, energy, investment, technology, transport, education, security, and other cooperation areas.
Digital Investment Bolsters Broader Economic Strategies
Following this €40 billion initiative, other major UAE-related investments in Germany have come to light. XRG has invested roughly €15 billion in Covestro, a leading German chemicals enterprise. The two governments also highlighted business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced investment package and other agreements signed during the state visit. The overarching economic strategy focuses on industrial growth, renewable energy, digital infrastructure, technological advancement, and fostering investment links between corporate and public sectors in both nations.
Trade relations between the UAE and Germany have experienced notable growth in recent years. Non-oil trade hit $15.5 billion in 2025, representing an increase of over 14% compared to 2024. Investment flows between the countries surpassed $10 billion from 2021 to 2025. Furthermore, both governments supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. These talks are expected to address bilateral trade issues and bolster the framework governing commercial relations.
Expanding UAE-Germany Collaboration with New Agreements
Beyond the core investment commitments, the visit resulted in agreements spanning energy, data centres, transport, legal assistance, environmental cooperation, security, and information systems. Both sides also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as an official platform for ongoing cooperation across these sectors. Sheikh Mohamed’s visit marked the first state visit by a president of the United Arab Emirates to Germany and included meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have continued to deepen their cooperation. The recent agreements add new investment and commercial initiatives to this existing framework. The €40 billion investment package remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further enhance the extensive economic relationship between the two countries.