BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed plans to channel €40 billion into various sectors within Germany, including industry, technology, energy, and digital infrastructure. This substantial commitment was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. During the visit, German Chancellor Friedrich Merz joined the UAE leader as both nations outlined an expanded series of economic accords. A significant portion of the plan allocates €10 billion for projects in Bavaria, positioning the southern German state as a key element of the overall investment.
A major focus of the UAE’s investment package centers on digital infrastructure. The two governments detailed their intentions to develop cutting-edge data centres with a combined capacity of approximately 1 gigawatt in Germany. Their joint statement also addressed advancements in artificial intelligence, industrial growth, and energy initiatives. Germany committed to facilitating the conditions necessary for the execution of these data-centre investments. These initiatives contribute to the growing economic ties between the UAE and Germany, spanning technology, manufacturing, energy, and other business sectors.
During the visit, companies from both nations formalized 29 agreements and memoranda of understanding, collectively valued at over €9.356 billion. An agreement was also reached to establish a German-UAE Investment Council, which aims to connect government agencies with private-sector enterprises to bolster bilateral investment efforts. Additionally, both countries launched a Strategic Dialogue that will focus on trade, technology, investment, energy, transport, education, security, and other facets of cooperation.
Digital infrastructure serves as the foundation for the major investment plan
The €40 billion pledge builds upon existing large-scale UAE-related investments in Germany. According to the joint government statement, XRG has invested around €15 billion in chemicals conglomerate Covestro. Officials highlighted ongoing collaborations involving Covestro, RWE, ADNOC, and Masdar as part of the broader economic partnership. These initiatives complement the newly announced investment plan. The governments identified key sectors such as industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as primary targets of the new package.
Trade activity between the UAE and Germany has also seen steady growth. In 2025, non-oil trade reached $15.5 billion, representing an increase of over 14% compared to the previous year. Cumulative investment flows between both countries surpassed $10 billion from 2021 to 2025. The two governments also supported ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing that the negotiations should bolster bilateral trade and foster broader commercial links.
Germany and UAE expand their economic partnership
The state visit resulted in agreements extending beyond investment and trade, including cooperation in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. Both nations also committed to exploring a framework for defense and security collaboration. The upcoming Strategic Dialogue will serve as a formal platform for advancing work across these sectors. Sheikh Mohamed’s visit marked the first-ever 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 many of the agreements announced during this visit. The €40 billion investment initiative now takes center stage in their economic agenda, alongside the €10 billion designated for Bavaria and plans for roughly 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, add a further commercial dimension to the broad set of bilateral commitments.