BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates aims to channel €40 billion into Germany, focusing on sectors such as industry, technology, energy, and digital infrastructure. This substantial commitment was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. German Chancellor Friedrich Merz accompanied the UAE leader as both governments detailed a broader array of economic accords. Notably, €10 billion of this plan is designated for projects within Bavaria, positioning the southern German state as a key recipient of the announced investments.
A major element of the UAE’s investment strategy centers on digital infrastructure. The two nations outlined plans to develop cutting-edge data centres with an aggregate capacity of approximately 1 gigawatt in Germany. Their joint declaration also emphasized collaborations in artificial intelligence, industrial advancement, and energy initiatives. Germany committed to facilitating the conditions necessary for executing the proposed data-centre investments. These initiatives form part of an expanding economic partnership spanning technology, manufacturing, energy, and other commercial sectors between the UAE and Germany.
During the visit, companies from both nations signed a total of 29 agreements and memoranda, collectively valued at over €9.356 billion. The UAE and Germany also agreed to establish a German-UAE Investment Council, designed to connect government agencies with private sector firms and promote bilateral investment activities. Additionally, a Strategic Dialogue was launched to cover areas such as trade, technology, investment, energy, transport, education, security, and other facets of bilateral cooperation.
Focus on digital infrastructure underpins the extensive investment plan
The €40 billion pledge builds upon several significant investments linked to the UAE and Germany. According to the joint government declaration, XRG has invested roughly €15 billion in chemicals group Covestro. The document also highlights collaboration involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship. These existing projects complement the newly announced investment strategy, with key sectors including industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy, as outlined by the governments.
Trade relations between the UAE and Germany continue to expand, with non-oil trade reaching $15.5 billion in 2025, representing over a 14% increase from the previous year. Investment flows between the two countries surpassed $10 billion during 2021 to 2025. Both governments expressed support for ongoing negotiations toward a comprehensive trade agreement between the UAE and the European Union, emphasizing that negotiations should enhance bilateral trade and foster broader commercial ties.
Germany and UAE strengthen economic collaboration through new agreements
Beyond investment and trade, the state visit facilitated agreements on cooperation in sectors such as energy, data centres, transport, security, legal assistance, environmental issues, and information technology. Both sides also committed to exploring a framework for defence and security cooperation. The new Strategic Dialogue aims to serve as an official platform for collaboration across these fields. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates.
Since establishing their strategic partnership in 2004, Germany and the UAE have built a foundation for numerous agreements discussed during this visit. The latest €40 billion investment plan emphasizes this economic alliance, highlighting the €10 billion allocated for Bavaria and the plan to develop approximately 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at over €9.356 billion, add a significant commercial dimension to the broader set of bilateral commitments.