BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has announced plans to channel €40 billion into Germany, targeting key industries such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. This significant investment plan was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions centered around these new economic initiatives. Notably, €10 billion of this fund is allocated for investments specifically in Bavaria, marking the state as a major recipient within the overall strategy.
A key focus within the announced investment is digital infrastructure. The UAE and Germany have outlined plans to develop state-of-the-art data centres with an aggregate capacity of around 1 gigawatt. Both governments also pinpointed artificial intelligence and industrial technology as vital sectors covered by this initiative. Germany committed to facilitating the necessary conditions for the data-centre projects to succeed. These announcements broaden the scope of economic agreements made during the visit, introducing new commitments in the areas of technology, energy, and industrial growth.
Business collaborations formed a major component of the trip, with 29 agreements and memoranda of understanding signed between companies from both nations, amounting to over €9.356 billion. Additionally, the UAE and Germany agreed to establish the German-UAE Investment Council, a platform designed to connect public institutions and private enterprises engaged in bilateral investment activities. The two nations also launched a Strategic Dialogue encompassing trade, energy, investment, technology, transport, education, security, and other cooperative sectors.
Digital initiatives boost the economic partnership
Following previous large-scale investments linked to the UAE in Germany, the €40 billion package continues to expand economic ties. XRG has invested roughly €15 billion in Covestro, a leading German chemical enterprise. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These efforts complement the new investment plans and other agreements signed during the state visit. The broader economic agenda encompasses industrial growth, renewable energy, digital infrastructure, technological advancement, and stronger corporate and public sector ties.
Trade relations between the UAE and Germany have also seen significant growth recently. Non-oil trade reached $15.5 billion in 2025, representing an increase of over 14% from 2024. Cumulative investment flows between the two countries surpassed $10 billion from 2021 through 2025. Furthermore, both nations supported negotiations for a comprehensive trade agreement between the UAE and the European Union. Officials stated that these discussions aim to enhance bilateral trade and reinforce the framework for commercial relations.
Additional agreements deepen UAE-Germany collaboration
Beyond the core investment plan, the visit resulted in agreements covering sectors such as energy, data centres, transportation, legal cooperation, environmental initiatives, security, and information systems. Both sides also agreed to explore a framework for defense and security collaboration. The Strategic Dialogue will serve as an official conduit for ongoing work in these domains. Sheikh Mohamed’s visit marked the first state visit by a President of the United Arab Emirates to Germany, including meetings with senior German officials.
The strategic partnership between Germany and the UAE was established in 2004. The latest agreements expand this existing framework through new investments and commercial initiatives. The €40 billion package remains the most substantial economic commitment announced during the visit, with €10 billion allocated for Bavaria and around 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at more than €9.356 billion add further depth to the expanding economic relationship between the two nations.