BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to channel €40 billion into Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. This announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz was present alongside the UAE leader. Both governments outlined a broad range of economic agreements. The plan allocates €10 billion specifically for projects in Bavaria, making the southern German state a key part of the investment.
A major component of the UAE investment is digital infrastructure. The two nations revealed plans for cutting-edge data centres with a total capacity of about 1 gigawatt in Germany. Their joint declaration also addressed artificial intelligence, industrial growth, and energy projects. Germany agreed to support the conditions necessary for executing the data-centre investments. These measures strengthen the growing economic ties between the UAE and Germany, spanning technology, manufacturing, energy, and other sectors.
During the visit, companies from both countries signed 29 agreements and memoranda, totaling over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council. This council will link government agencies with private companies and promote investment exchanges. They also launched a Strategic Dialogue that covers trade, technology, investment, energy, transport, education, security, and other areas of bilateral cooperation.
Digital infrastructure is central to the major investment plan
The €40 billion pledge builds on several existing UAE-related investments in Germany. According to the joint government statement, XRG has invested about €15 billion in chemicals firm Covestro. Officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar as part of the broader economic partnership. These projects complement the newly announced plan. The governments identified industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as key focus areas of the package.
Trade between the UAE and Germany continues to grow. Non-oil trade reached $15.5 billion in 2025, rising over 14% from the previous year. From 2021 to 2025, investment flows between the two countries exceeded $10 billion. Both governments also supported ongoing talks for a comprehensive trade agreement between the UAE and the European Union. They stated that negotiations should enhance bilateral trade and foster wider commercial links.
Germany and UAE expand their economic partnership
The state visit resulted in agreements beyond investment and trade. The two countries announced cooperation in energy, data centres, transport, security, legal aid, environmental issues, and information systems. They also agreed to explore a framework for defence and security collaboration. The new Strategic Dialogue will serve as a formal platform for cooperation across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by an Emirati president.
Germany and the UAE established their strategic partnership in 2004. This framework underpins many of the agreements made during the visit. The new €40 billion investment commitment is now central to their economic agenda. It includes €10 billion allocated for Bavaria and plans for approximately 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, add a commercial dimension to the broader bilateral agreements.