BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to inject €40 billion into Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. This substantial commitment was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz accompanied the UAE leader, as both nations detailed a series of broader economic agreements. Notably, the investment includes €10 billion dedicated to projects in Bavaria, emphasizing the importance of this southern German state within the overall initiative.
A key focus of the UAE’s investment package is digital infrastructure. Both governments outlined plans for cutting-edge data centres with an aggregate capacity of approximately 1 gigawatt in Germany. Their joint declaration also covered areas such as artificial intelligence, industrial advancement, and energy initiatives. Germany committed to supporting the implementation of these planned data-centre projects, creating a conducive environment for their development. These measures are part of an expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, energy, and other commercial sectors.
During the visit, representatives from both countries signed 29 agreements and memoranda of understanding, collectively valued at over €9.356 billion. The two nations also agreed to establish a German-UAE Investment Council to facilitate connections between government agencies and private-sector firms, fostering increased investment activity. Additionally, both sides launched a Strategic Dialogue that will focus on trade, technology, investment, energy, transport, education, security, and other areas of bilateral cooperation.
Digital infrastructure is the cornerstone of the extensive investment initiative
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 conglomerate Covestro. Officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic partnership. These projects complement the newly announced investment strategy. The governments identified industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as primary focus areas within this expansive package.
Trade between the UAE and Germany has 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 investment flows surpassed $10 billion. Both governments also expressed support for ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing that these talks should foster bilateral trade and enhance overall commercial relations.
Germany and UAE deepen their economic partnership
The state visit resulted in agreements that extended beyond investment and trade, covering cooperation across energy, data centres, transport, security, legal support, environmental issues, and information systems. The two nations also agreed to explore a framework for defence and security collaboration. The newly formed Strategic Dialogue will serve as an official channel to facilitate joint efforts across these sectors. This visit marked the first time a president of the United Arab Emirates made an official state visit to Germany.
Since establishing their strategic partnership in 2004, Germany and the UAE have built a robust foundation for many of the recent agreements announced during this visit. The latest €40 billion investment plan places considerable emphasis on economic cooperation, with €10 billion allocated specifically for Bavaria and plans for about 1 gigawatt of new data-centre capacity. The 29 commercial agreements, valued at more than €9.356 billion, further bolster their economic ties, adding a significant business dimension to their broader bilateral relationship.