BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has announced plans to channel €40 billion into Germany, focusing on sectors such as industry, technology, energy, and digital infrastructure. This investment initiative was revealed during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. During the visit, German Chancellor Friedrich Merz joined the UAE leader in presenting a series of economic accords between both nations. A portion of the investment, totaling €10 billion, is allocated for projects in Bavaria, positioning the southern German state as a key participant in the broader commitment.
A major component of the UAE’s investment strategy centers on digital infrastructure. The two governments detailed plans to develop advanced data centres with an aggregate capacity of approximately 1 gigawatt in Germany. Their joint statement also addressed initiatives in artificial intelligence, industrial progress, and energy. Germany expressed its support for the conditions necessary to realize the planned data-centre investments. These steps build on an expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, energy, and other commercial domains.
During the visit, representatives from both countries signed 29 agreements and memoranda of understanding, with a combined value surpassing €9.356 billion. Additionally, the establishment of a German-UAE Investment Council was agreed upon. This council aims to connect government agencies with private-sector firms and promote bilateral investment activities. Both nations also initiated a Strategic Dialogue to facilitate collaboration across trade, technology, investment, energy, transport, education, security, and other bilateral areas.
Major investment package anchored in digital infrastructure
The €40 billion commitment builds on several significant UAE-related investments already linked to Germany. According to the joint government declaration, XRG has invested roughly €15 billion in chemicals firm Covestro. Officials also highlighted cooperation involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship. These projects supplement the newly announced investment plan, with industrial development, cutting-edge technology, artificial intelligence, digital infrastructure, and energy identified as primary focus areas by both governments.
Trade relations between the UAE and Germany have continued to expand, with non-oil trade reaching $15.5 billion in 2025, reflecting a growth of over 14% compared to the previous year. Between 2021 and 2025, bilateral investments exceeded $10 billion. Both countries also expressed support for ongoing discussions to establish a comprehensive trade agreement between the UAE and the European Union, emphasizing that negotiations should enhance bilateral trade and foster wider commercial links.
Germany and UAE strengthen economic cooperation through expanded initiatives
The state visit resulted in agreements extending beyond investment and trade. Both parties announced collaboration in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. They also agreed to explore a framework for defence and security cooperation. The new Strategic Dialogue will serve as an official channel to coordinate efforts across these sectors. Sheikh Mohamed’s visit was notable as 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 laid the groundwork for many of the agreements announced during this visit. The latest €40 billion investment plan centers on advancing their economic ties, while also including the €10 billion dedicated to Bavaria and plans for approximately 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further complement the broader bilateral agenda by adding a commercial dimension to the overall set of commitments.