BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates revealed plans to channel €40 billion into Germany, targeting a range of key industries. This financial commitment encompasses areas such as manufacturing, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from Sept. 9 to 11. German Chancellor Friedrich Merz joined the UAE president in endorsing this significant investment initiative. Of the total, €10 billion will be directed toward projects in Bavaria.
A key component of the plan involves substantial investment in Germany’s digital infrastructure. A joint declaration from the two governments outlined plans for new data centres with approximately 1 gigawatt of total capacity, with Germany committing to creating favorable conditions for their development. This initiative forms part of a broader set of economic agreements announced during the state visit. Both nations also outlined collaborations in technology, energy, trade, investment, and other areas covered by their bilateral partnership.
The visit also resulted in 29 business agreements and memoranda between UAE and German companies, collectively valued at over €9.356 billion, according to the joint declaration. Additionally, both governments agreed to establish a German-UAE Investment Council, which will serve as a platform for investment and cooperation between government entities and private sector players. The UAE and Germany also launched a Strategic Dialogue to enhance collaboration in economic, technological, security, energy, transport, environmental, cultural, and educational sectors.
UAE’s Investment Initiative Focuses on Industry and Digital Infrastructure
Following other substantial UAE investments in Germany, the €40 billion commitment builds on previous efforts. As stated in the joint declaration, XRG has invested approximately €15 billion in Covestro. The two countries also identified further corporate investment opportunities and partnership plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the new investment plan and are not included within the €40 billion total. The governments emphasized cooperation in industrial development, digital infrastructure, and energy as key areas of focus.
Trade relations between the UAE and Germany have strengthened considerably in recent years. Non-oil trade between the two countries reached $15.5 billion in 2025, representing an increase of over 14% compared to 2024. Cumulative investments from 2021 to 2025 surpassed $10 billion. Both governments also reaffirmed their backing for negotiations on a comprehensive trade agreement between the UAE and European Union, expressing support for an ambitious, commercially driven deal covering bilateral trade relations.
Expanding UAE-Germany Economic Relations through New Agreements
The agreements unveiled during the visit extend beyond investment and trade. They include arrangements related to energy collaboration, data centres, air transport, security, legal support, environmental initiatives, and information systems. Both nations also agreed to explore a framework for defense and security cooperation. An additional agreement concerning air transport addressed access rights for UAE national carriers at Berlin Airport. These measures support the broader Strategic Dialogue established to coordinate efforts across various sectors.
This visit marked the first time a UAE president made a state visit to Germany. It builds on the bilateral strategic partnership initiated in 2004. Sheikh Mohamed met with German leaders in Berlin as both sides announced the investment package, business agreements, and new cooperation frameworks. The €40 billion investment remains the most prominent highlight among the economic initiatives, with €10 billion allocated to Bavaria and digital infrastructure plans supporting about 1 gigawatt of data-centre capacity.