BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany, the United Arab Emirates revealed plans to inject €40 billion into the German economy, targeting sectors such as industry, technology, energy, and digital infrastructure. This significant financial commitment was unveiled alongside broader economic accords between the two nations, with German Chancellor Friedrich Merz participating in the discussions. Of this total, €10 billion will be designated for projects in Bavaria, emphasizing the importance of the southern German state within the overall investment framework.
A notable portion of the UAE’s investment package is dedicated to advancing digital infrastructure. Both governments outlined plans to develop cutting-edge data centres with an aggregate capacity of approximately 1 gigawatt in Germany. Their joint declaration further addressed areas such as artificial intelligence, industrial growth, and energy initiatives. Germany committed to supporting conditions necessary for the execution of these planned data-centre projects. These actions serve to strengthen an already growing economic partnership that spans technology, manufacturing, energy, and other commercial sectors.
Throughout the visit, companies from both nations signed 29 agreements and memoranda of understanding valued at over €9.356 billion combined. Additionally, the two countries agreed to establish the German-UAE Investment Council, which will facilitate connections between government agencies and private-sector entities, promoting investment activities. A new Strategic Dialogue was also launched, focusing on trade, technology, investment, energy, transport, education, security, and other bilateral cooperation areas.
Digital infrastructure anchors major investment package
The €40 billion pledge builds upon existing UAE-related investments in Germany. According to the joint government statement, XRG has invested roughly €15 billion in chemicals conglomerate Covestro. Officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar as part of the broader economic relationship. These projects complement the newly announced investment plan, with key sectors including industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy.
Trade relations between the UAE and Germany continue to expand. In 2025, non-oil trade volume reached $15.5 billion, representing over a 14% increase compared to the previous year. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. The two nations also endorsed ongoing negotiations to establish a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and foster broader economic ties.
Germany and UAE broaden bilateral economic collaborations
Beyond investment and trade, the state visit resulted in agreements to cooperate across sectors such as energy, data centres, transportation, security, legal support, environmental issues, and information technology. Both parties also agreed to explore a framework for defence and security collaboration. The newly initiated Strategic Dialogue will serve as a formal platform to facilitate ongoing work in these domains. Sheikh Mohamed’s visit marked the first 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 current €40 billion investment pledge is central to their economic strategy, complemented by the €10 billion earmarked for Bavaria and plans to develop approximately 1 gigawatt of new data-centre capacity. The 29 commercial agreements, valued at more than €9.356 billion, add a substantial business dimension to the broader spectrum of bilateral agreements.