BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to channel €40 billion into Germany across multiple key sectors. This financial package encompasses areas such as industry, artificial intelligence, cutting-edge technology, 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 regarding these new economic commitments. Notably, €10 billion of the total will be invested specifically in Bavaria, securing a significant portion of the overall plan for the state.
A key element of the announced investment program is digital infrastructure. Both countries outlined plans to develop advanced data centres with an aggregate capacity of around 1 gigawatt. The cooperation also emphasizes artificial intelligence and industrial technology as focal points of the package. Germany pledged to support the necessary conditions for the data-centre projects. These developments expanded the scope of economic agreements announced during the visit and introduced new commitments in technology, energy, and industrial development sectors.
Business accords formed a significant part of the visit’s agenda. Companies from the UAE and Germany signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, both nations agreed to establish a German-UAE Investment Council, which aims to connect public institutions and private enterprises involved in bilateral investments. They also launched a Strategic Dialogue addressing trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Digital investments broaden economic cooperation
This €40 billion initiative builds upon previous substantial UAE-related investments in Germany. XRG has invested roughly €15 billion in Covestro, a leading 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 strategy promotes industrial growth, renewable energy, digital infrastructure, technological innovation, and investment collaborations between corporate and public sectors in both countries.
Trade between the UAE and Germany has experienced notable growth recently. Non-oil trade reached $15.5 billion in 2025, representing an increase of over 14% from 2024. Cumulative investment flows between the two nations surpassed $10 billion during 2021-2025. Both countries also supported negotiations for a comprehensive trade agreement between the UAE and the European Union. Officials stated that these negotiations should focus on enhancing bilateral trade and fortifying the framework governing commercial relations.
Additional agreements strengthen UAE-Germany collaboration
Beyond the core investment plan, the visit yielded agreements covering 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 a formal mechanism for ongoing cooperation in these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany, including meetings with top German officials.
Germany and the UAE established their strategic partnership in 2004. The latest agreements introduce new investment and trade initiatives within that existing framework. The €40 billion investment remains the largest economic commitment announced during the visit, with €10 billion directed towards Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at more than €9.356 billion further deepen the economic ties between the two nations.