BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to channel €40 billion into Germany, targeting several key industries. This investment plan encompasses sectors 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. A notable aspect of the package is €10 billion allocated for investments in Bavaria, which secures a substantial share of the overall plan.
Digital infrastructure is a key focus within the announced investment strategy. Both the UAE and Germany outlined plans to develop advanced data centres with a combined capacity of about 1 gigawatt. The two governments also identified artificial intelligence and industrial technology as primary sectors supported by the initiative. Germany committed to facilitating the necessary conditions for the successful implementation of the data-centre projects. These developments expanded the scope of economic agreements announced during the visit and introduced new commitments across technology, energy, and industrial growth.
A significant portion of the visit was dedicated to business agreements. Companies from both nations signed a total of 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will link public bodies and private enterprises involved in bilateral investments. Both countries also launched a Strategic Dialogue covering trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Digital Investments Drive Broader Economic Engagement
The €40 billion investment package builds upon previous significant UAE-related investments in Germany. XRG has invested approximately €15 billion in Covestro, a major German chemicals firm. The two governments highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the newly announced package and other agreements signed during the state visit. The overall economic strategy emphasizes industrial development, renewable energy, digital infrastructure, technology, and strengthening corporate and institutional investment ties between the two countries.
Trade relations between the UAE and Germany have also experienced growth recently. Non-oil trade reached $15.5 billion in 2025, representing an increase of over 14% from 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Furthermore, both nations supported negotiations for a comprehensive trade agreement between the UAE and the European Union. Officials emphasized that negotiations should enhance bilateral trade and improve the framework governing commercial relations.
New Agreements Broaden UAE-Germany Collaborative Efforts
Beyond the core investment package, the visit resulted in additional agreements covering energy, data centres, transport, legal assistance, environmental cooperation, security, and information systems. The two sides also agreed to develop a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal avenue for ongoing cooperation in these fields. 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 leaders.
Germany and the UAE established their strategic partnership in 2004. The latest agreements introduce new investment and commercial measures into that existing relationship. The €40 billion package remains the largest economic commitment announced during this visit. It includes €10 billion directed toward Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at more than €9.356 billion add another layer to the expanding economic ties between the two nations.