BERLIN, GERMANY / RankWire.AI / – Amid ongoing efforts to deepen economic ties, the United Arab Emirates is set to channel €40 billion into Germany’s industry, technology, energy, and digital sectors. This substantial financial commitment was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. Participating alongside him was German Chancellor Friedrich Merz, as both nations outlined a broad spectrum of economic agreements. A key part of the plan allocates €10 billion to projects in Bavaria, positioning the southern German region as a central element of the investment initiative.
A substantial portion of the UAE’s investment package is dedicated to advancing digital infrastructure. The joint declarations from both governments specify plans for cutting-edge data centres with approximately 1 gigawatt of combined capacity within Germany. Additionally, the two nations addressed cooperation in artificial intelligence, industrial growth, and energy initiatives. Germany committed to supporting conditions necessary for the successful deployment of the planned data-centre investments. These measures serve to bolster an already expanding economic partnership that spans technology, manufacturing, energy, and other commercial sectors between the UAE and Germany.
During the visit, representatives from both countries signed 29 agreements and memoranda of understanding, collectively valued at over €9.356 billion. An important outcome was the creation of a German-UAE Investment Council, designed to link government bodies with private-sector entities and promote bilateral investment activities. Additionally, both nations launched a Strategic Dialogue to facilitate cooperation across trade, technology, investment, energy, transport, education, security, and various other areas of bilateral collaboration.
Digital infrastructure as a cornerstone of the extensive investment plan
Following the €40 billion commitment, several significant UAE-linked investments already connected to Germany are highlighted. According to the joint government declaration, XRG has invested approximately €15 billion in chemicals group Covestro. Authorities also noted collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship. These projects complement the newly announced investment initiatives, emphasizing industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as primary focus areas of the new plan.
Trade activities between the UAE and Germany have continued to show growth, with non-oil trade reaching $15.5 billion in 2025—marking over a 14% increase from the previous year. Investment flows between the two nations from 2021 to 2025 have 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 the discussions should enhance bilateral trade and foster broader commercial relationships.
Enhancing bilateral economic ties through expanded cooperation
Beyond investment and trade, the state visit yielded agreements in sectors including energy, data centres, transport, security, legal assistance, environmental issues, and information systems. Both parties also agreed to explore a framework for defence and security collaboration. The new Strategic Dialogue will serve as a formal platform to coordinate efforts across these fields. This visit marked the first time a president of the United Arab Emirates made a state visit to Germany, underscoring the significance of the relationship.
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 current €40 billion investment initiative positions economic cooperation at the forefront of their agenda. It also incorporates the €10 billion allocation for Bavaria and plans for about 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, add a substantial commercial element to the broader bilateral arrangements.