BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed to injecting €40 billion into Germany, targeting key industries such as industry, artificial intelligence, advanced technology, digital infrastructure, and energy. This significant investment was announced 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. The plan allocates €10 billion specifically for investments in Bavaria, providing the state with a notable share of the overall funding.
A key element of the announced investment plan centers on digital infrastructure. Both nations outlined initiatives for advanced data centres with a total capacity of approximately 1 gigawatt. Artificial intelligence and industrial technology were also designated as focus areas within the package. Germany committed to supporting the conditions necessary for these data-centre projects to proceed. These developments broaden the scope of economic accords introduced during the visit, including new commitments in the fields of technology, energy, and industrial progress.
Business arrangements comprised another substantial component of the trip. Firms from both countries signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which aims to connect public agencies with private sector entities involved in bilateral investments. The two nations also initiated a Strategic Dialogue that encompasses trade, energy, investment, technology, transport, education, security, and other cooperation areas.
Digital Economy Investment Enhances Bilateral Relations
This €40 billion investment package follows other substantial 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 funding and other agreements signed during the state visit. The broader economic cooperation agenda emphasizes industrial development, clean energy, digital infrastructure, technology, and investment collaborations between businesses and public institutions in both countries.
Trade relations between the UAE and Germany have experienced growth in recent years. Non-oil trade reached $15.5 billion in 2025, reflecting an increase of more than 14% compared to 2024. From 2021 to 2025, cumulative investment flows between the nations surpassed $10 billion. Both governments also supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, with the aim to address bilateral trade issues and reinforce the framework governing their commercial relations.
Additional Agreements Broaden 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 cooperation. The Strategic Dialogue established during the trip will serve as an official channel for ongoing collaboration across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates and included meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have built a strong foundation for cooperation. The latest agreements introduce new investment and commercial initiatives within that existing framework. The €40 billion package stands as the largest economic commitment announced during the visit, with €10 billion allocated for Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further strengthen the expanding economic ties between the two nations.