BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to inject €40 billion into Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. This substantial funding was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany. During the trip, German Chancellor Friedrich Merz and the UAE leader discussed a broader spectrum of economic accords, with the investment plan allocating €10 billion specifically for projects in Bavaria, emphasizing the southern German state’s importance in the overall commitment.
A key element of the UAE’s investment strategy is digital infrastructure. Both governments outlined plans for state-of-the-art data centres with a total capacity of approximately 1 gigawatt in Germany. Their joint statement also addressed initiatives in artificial intelligence, industrial growth, and energy. Germany committed to facilitating the conditions necessary for the successful implementation of these data-centre projects. These initiatives further strengthen the expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, energy, and other commercial fields.
During the visit, companies from both nations formalized their cooperation through 29 agreements and memoranda of understanding valued at over €9.356 billion. The UAE and Germany also agreed to create a German-UAE Investment Council, designed to link government agencies with private-sector entities and promote bilateral investment activities. Additionally, both countries launched a Strategic Dialogue focusing on trade, technology, investment, energy, transport, education, security, and other areas of cooperation.
Major Investment Package Anchored by Digital Infrastructure
The €40 billion commitment builds upon several significant UAE-related investments in Germany. According to the joint government statement, XRG has invested approximately €15 billion in chemicals company Covestro. Officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship. These projects complement the newly announced investment plan, which emphasizes industrial development, cutting-edge technology, artificial intelligence, digital infrastructure, and energy as primary focus areas.
Trade relations between the UAE and Germany continue to expand. In 2025, non-oil trade reached $15.5 billion, reflecting over a 14% increase from the previous year. Investment flows from both countries totaled more than $10 billion from 2021 to 2025. Furthermore, the governments expressed support for ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing the importance of strengthening bilateral trade and commercial ties.
Germany and UAE Enhance Their Economic Collaboration
The state visit resulted in agreements extending beyond investment and trade. The two nations announced collaboration in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. They also agreed to explore a framework for defence and security cooperation. The new Strategic Dialogue aims to serve as a formal platform for cooperation across these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany.
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 latest €40 billion investment pledge underscores their economic agenda, with €10 billion allocated 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 commercial dimension to the broad array of bilateral initiatives.