BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has announced plans to channel €40 billion into Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. This investment commitment was revealed during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. During this visit, German Chancellor Friedrich Merz joined the UAE leader in unveiling a broad array of economic agreements. Notably, the plan allocates €10 billion for projects within Bavaria, positioning the southern German state as a significant component of the overall investment.
A key aspect of the UAE’s financial package involves digital infrastructure. The two governments outlined plans to develop advanced data centres with a combined capacity of about 1 gigawatt in Germany. The joint declaration also addressed areas such as artificial intelligence, industrial development, and energy initiatives. Germany agreed to facilitate the conditions necessary for the execution of these planned data-centre projects. These efforts strengthen an already expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, energy, and other commercial industries.
During the visit, companies from both nations signed 29 agreements and memoranda of understanding valued at over €9.356 billion in total. Furthermore, the UAE and Germany committed to creating a German-UAE Investment Council. This council aims to link government agencies with private-sector enterprises and foster investment activities between the two nations. Additionally, both governments launched a Strategic Dialogue to discuss trade, technology, investment, energy, transport, education, security, and other areas of bilateral cooperation.
The digital infrastructure component anchors the extensive investment plan
The €40 billion pledge builds on several existing UAE-related investments in Germany. According to the joint government statement, XRG has invested approximately €15 billion in chemicals conglomerate Covestro. Officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within their broader economic partnership. These ongoing projects complement the newly announced investment strategy, which emphasizes industrial growth, advanced technology, artificial intelligence, digital infrastructure, and energy sectors.
Trade between the UAE and Germany has continued its upward trend, with non-oil trade reaching $15.5 billion in 2025—a rise of over 14% compared to the previous year. From 2021 to 2025, bilateral investment flows surpassed $10 billion. Additionally, the two governments expressed support for ongoing negotiations concerning a comprehensive trade agreement between the UAE and the European Union, emphasizing the importance of enhancing bilateral trade and broader economic ties.
Germany and UAE expand their economic partnership
The state visit led to agreements spanning beyond investment and trade, including collaborations in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. The two nations also committed to exploring a framework for defence and security cooperation. The newly established Strategic Dialogue will serve as a formal platform for cooperation across these fields. Notably, Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates.
Since establishing their strategic partnership in 2004, Germany and the UAE have laid the groundwork for numerous agreements announced during this visit. The current €40 billion investment initiative positions the economic relationship at the forefront of their agenda, featuring €10 billion earmarked for Bavaria and plans to develop approximately 1 gigawatt of new data-centre infrastructure. The 29 business agreements, valued at more than €9.356 billion, add a commercial dimension to the broader set of bilateral commitments.