BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to channel €40 billion into Germany across multiple key industries. This investment encompasses sectors such as manufacturing, 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 concerning these new economic initiatives. Of this total, €10 billion will be allocated specifically for investments in Bavaria, representing a substantial portion of the overall plan.
A core element of the investment plan is digital infrastructure. The UAE and Germany have laid out plans to develop advanced data centres with an aggregate capacity of approximately 1 gigawatt. Additionally, both governments emphasized artificial intelligence and industrial technology as crucial areas within the package. Germany committed to supporting the necessary conditions for the data-centre projects to advance. These announcements broaden the scope of economic agreements made during the visit and introduce new commitments in technology, energy, and industrial development.
Another significant aspect of the visit involved business agreements. Companies from both nations signed 29 accords and memoranda valued at over €9.356 billion. Furthermore, the UAE and Germany agreed to establish a German-UAE Investment Council to facilitate connections between public agencies and private enterprises involved in bilateral investments. The two countries also launched a Strategic Dialogue aimed at enhancing cooperation across trade, energy, investment, technology, transport, education, security, and other sectors.
Digital Funding Bolsters Broader Economic Relations
This €40 billion initiative follows other substantial UAE-related investments in Germany. XRG has invested approximately €15 billion in Covestro, a leading German chemicals firm. The two governments also highlighted commercial activities involving Covestro, RWE, ADNOC, and Masdar. These projects are in addition to the newly announced package and other agreements made during the official visit. The wider economic strategy involves industrial growth, renewable energy, digital infrastructure, technological innovation, and increased collaboration between companies and public institutions in both countries.
Trade relations between the UAE and Germany have seen significant growth recently. Non-oil trade reached $15.5 billion in 2025, reflecting an increase of more than 14% from 2024. Cumulative investment flows from 2021 to 2025 exceeded $10 billion. Both nations also supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. According to both governments, these talks should improve bilateral trade relations and strengthen the framework regulating commercial exchanges.
Expanded UAE-Germany Collaboration Through New Agreements
In addition to the core investment commitments, the visit yielded agreements on areas such as energy, data centres, transportation, legal cooperation, environmental initiatives, security, and information systems. Both sides also agreed to explore a framework for defence and security partnership. The Strategic Dialogue will serve as a formal platform for ongoing cooperation across these sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates and included meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their collaborative efforts. The latest agreements introduce new investment and commercial measures within that existing framework. The €40 billion investment remains the largest economic commitment announced during the visit, with €10 billion earmarked for Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further deepen the economic ties between the two nations.