BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to allocate €40 billion into various key industries within Germany. This financial plan encompasses sectors such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The declaration was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions regarding these new economic initiatives. As part of the package, €10 billion are earmarked for investments in Bavaria, granting the region a notable portion of the overall commitment.
A significant aspect of the announced investment plan is digital infrastructure. The UAE and Germany outlined strategies for developing advanced data centres with a combined capacity of approximately 1 gigawatt. Both nations also identified artificial intelligence and industrial technology as focus areas under the package. Germany committed to supporting the necessary conditions for the data-centre projects. These announcements broaden the scope of economic agreements revealed during the visit and introduce additional commitments in the fields of technology, energy, and industrial growth.
Facilitating business relations formed another key element of the visit. Companies from both countries signed 29 agreements and memoranda of understanding valued at over €9.356 billion. The UAE and Germany agreed to establish a German-UAE Investment Council, which will link public agencies and private enterprises involved in bilateral investments. The two nations also launched a Strategic Dialogue focusing on trade, energy, investment, technology, transport, education, security, and other sectors of cooperation.
Digital Investment Broadens Economic Collaboration
The €40 billion investment package builds on previous substantial UAE-related investments in Germany. XRG has invested roughly €15 billion in Covestro, a major German chemicals firm. The two governments also emphasized ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced plan and other agreements finalized during the state visit. The broader economic strategy encompasses industrial development, clean energy, digital infrastructure, technological innovation, and investment partnerships between corporate and public sectors of both nations.
Trade volume between the UAE and Germany has seen consistent growth recently. In 2025, non-oil trade reached $15.5 billion, reflecting over a 14% increase from 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both countries also supported negotiations toward a comprehensive trade agreement between the UAE and the European Union. Officials indicated that these discussions aim to enhance bilateral trade and fortify the framework governing commercial relations.
Expanded UAE-Germany Collaboration Through New Agreements
Beyond the core investment plan, the visit resulted in additional agreements covering energy, data centres, transportation, legal support, environmental cooperation, security, and information systems. The two sides agreed to explore a framework for defense and security collaboration as well. The Strategic Dialogue will serve as a formal mechanism for ongoing cooperation across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by an Emirati president, featuring meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation through these recent agreements. The €40 billion package remains the most significant economic commitment announced during the visit, including €10 billion allocated to Bavaria and approximately 1 gigawatt of data-centre capacity. The 29 business agreements valued at more than €9.356 billion further deepen the economic ties between the two nations.