BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is planning to allocate €40 billion into various key sectors within Germany. This comprehensive investment encompasses industries such as technology, artificial intelligence, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz participated in discussions concerning these new economic initiatives. Of the total, €10 billion will be designated for projects in Bavaria, securing a considerable portion of the overall investment plan for the region.
A significant element of the investment focuses on digital infrastructure. Both nations outlined ambitions to develop advanced data centres with a combined capacity of around 1 gigawatt. Artificial intelligence and industrial technology were also identified as priority areas within the package. Germany committed to supporting the conditions necessary for the success of the data-centre projects. These announcements broaden the scope of economic agreements introduced during the visit, adding new commitments in the sectors of technology, energy, and industrial growth.
Business collaborations constituted another major aspect of the visit. A total of 29 agreements and memoranda worth over €9.356 billion were signed by companies from both countries. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will connect public agencies and private enterprises involved in bilateral investments. The two nations also launched a Strategic Dialogue to facilitate cooperation across trade, energy, investment, technology, transport, education, security, and other sectors.
Expansion of Digital Investment Broadens Economic Ties
The €40 billion investment package follows other significant UAE-related investments in Germany. XRG has invested roughly €15 billion in Covestro, a prominent German chemicals firm. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the state visit. The broader economic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technological collaboration, and investment relations between public institutions and private companies from both nations.
Trade between the UAE and Germany has experienced notable growth recently. In 2025, non-oil trade reached $15.5 billion, representing an increase of over 14% compared to 2024. Cumulative investment flows from 2021 to 2025 exceeded $10 billion. Both countries also supported negotiations for a comprehensive trade agreement between the UAE and the European Union. The aim is for these discussions to enhance bilateral trade relations and strengthen the framework that governs their commercial interactions.
Additional Agreements Extend UAE-Germany Collaboration
Beyond the core investment commitments, the visit resulted in agreements covering various fields such as energy, data centres, transport, legal assistance, environmental cooperation, security, and information technology. A framework for defence and security cooperation was also explored. The Strategic Dialogue will serve as a formal platform for ongoing collaboration across these areas. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates and involved meetings with high-level German officials.
The strategic partnership between Germany and the UAE was established in 2004. The recent agreements introduce additional investment and commercial initiatives within this existing framework. The €40 billion package remains the largest economic commitment announced during the visit, with €10 billion allocated specifically to Bavaria and about 1 gigawatt of planned data-centre capacity. The 29 business agreements totaling more than €9.356 billion further deepen the economic relationship between the two nations.