BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has announced plans to channel €40 billion into Germany, focusing on sectors such as industry, technology, energy, and digital infrastructure. This substantial commitment was revealed during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz accompanied the UAE leader, as both nations outlined a series of broader economic agreements. A significant portion of this plan, €10 billion, is designated for projects in Bavaria, positioning the southern German state as a key component of the overall investment strategy.
Digital infrastructure is a core element of the UAE’s investment initiative. The two governments shared their intentions to develop advanced data centres with a total capacity of about 1 gigawatt in Germany. Their joint statement also addressed artificial intelligence, industrial growth, and energy initiatives. Germany committed to supporting the conditions necessary for executing the planned data-centre investments. These steps strengthen the expanding economic partnership between the UAE and Germany across sectors such as technology, manufacturing, and energy.
During the visit, companies from both countries formalized their cooperation by signing 29 agreements and memoranda valued at over €9.356 billion. Both nations also agreed to create a German-UAE Investment Council, designed to connect government agencies with private sector firms and promote investment activities. Additionally, they launched a Strategic Dialogue to cover trade, technology, investment, energy, transport, education, security, and other areas of bilateral cooperation.
Digital infrastructure serves as the foundation for the major investment plan
Following the €40 billion commitment, several notable UAE-related investments already linked to Germany are underway. According to the joint government statement, XRG has invested approximately €15 billion in chemicals group Covestro. The officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within their broader economic framework. These existing projects complement the newly announced investment strategy. The governments emphasized sectors such as industrial development, cutting-edge technology, artificial intelligence, digital infrastructure, and energy as central areas in the new package.
Trade between the UAE and Germany continues to expand, with non-oil trade reaching $15.5 billion in 2025, marking an increase of over 14% from the previous year. Cumulative investment flows between the two nations surpassed $10 billion from 2021 to 2025. Both governments also expressed support for ongoing negotiations to establish a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and broader commercial relations.
Germany and UAE deepen their economic partnership
The state visit resulted in agreements that extend beyond investment and trade, encompassing cooperation in energy, data centres, transport, security, legal support, environmental issues, and information systems. Both sides also agreed to explore a framework for defence and security cooperation. The new Strategic Dialogue will serve as a formal mechanism to facilitate collaboration 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 recent agreements. The €40 billion investment pledge now sits at the core of their economic agenda, complemented by the €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, further reinforce the broader set of bilateral commitments announced during the visit.