BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to channel €40 billion into Germany across multiple key sectors. This financial commitment 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 official state visit to Germany. German Chancellor Friedrich Merz participated in discussions concerning these new economic endeavors. A notable part of the plan allocates €10 billion to investments in Bavaria, giving the region a prominent share of the overall initiative.
Digital infrastructure forms a fundamental component of this ambitious investment plan. The UAE and Germany have jointly outlined proposals for state-of-the-art data centres with a combined capacity of about 1 gigawatt. Both governments also pinpointed artificial intelligence and industrial technology as key focus areas within the package. Germany committed to supporting the prerequisites necessary for the development of these data-centre projects. These declarations expanded the scope of economic agreements introduced during the visit and introduced new commitments in the fields of technology, energy, and industrial development.
Another significant element of the visit involved the establishment of business agreements. Companies from both nations signed 29 accords and memoranda valued at over €9.356 billion. In addition, the UAE and Germany agreed to establish a German-UAE Investment Council, designed to connect public agencies and private firms 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 Investment Extends the Economic Partnership
Following the €40 billion package, the UAE has been involved in other substantial investments in Germany. XRG has invested approximately €15 billion in Covestro, a leading German chemicals enterprise. The two governments also emphasized ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These efforts complement the newly announced package and other agreements made during the state visit. The broader economic agenda promotes industrial growth, renewable energy, digital infrastructure, technological advancement, and strengthened investment ties between corporate and public sectors in both countries.
Trade relations between the UAE and Germany have seen considerable growth recently. Non-oil trade reached $15.5 billion in 2025, marking an increase of over 14% compared to 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both nations supported negotiations aiming for a comprehensive trade agreement between the UAE and the European Union. Officials stated that these discussions should enhance bilateral trade and bolster the framework regulating commercial relations.
Additional Agreements Broaden UAE-Germany Collaborations
Beyond the core investment commitments, the visit also resulted in agreements spanning energy, data centres, transportation, legal assistance, environmental cooperation, security, and information systems. Both sides agreed to explore establishing a framework for defence and security collaboration. The Strategic Dialogue will serve as an official platform to continue advancing work in these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates, including meetings with senior German officials.
The strategic partnership between Germany and the UAE was initially formed in 2004. The latest agreements introduce new investment and commercial initiatives within that established framework. The €40 billion investment package remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further reinforce the deepening economic relationship between the two nations.