BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to allocate €40 billion into Germany across diverse key industries. This substantial financial commitment includes sectors such as industry, artificial intelligence, advanced technology, digital infrastructure, and energy. The declaration was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions concerning the new economic initiatives. Among the measures, €10 billion will be invested specifically in Bavaria, granting that region a notable share of the overall plan.
A key component of the announced investment program is digital infrastructure. The UAE and Germany laid out plans to develop advanced data centres with an aggregate capacity of approximately 1 gigawatt. Both governments emphasized artificial intelligence and industrial technology as focal points within the package. Germany expressed support for creating the conditions necessary for the data-centre projects. These announcements expanded the scope of economic agreements introduced during the visit and added fresh commitments involving technology, energy, and industrial development.
Business cooperation played a significant role during the visit as well. Companies from both nations signed 29 agreements and memoranda valued at over €9.356 billion. The UAE and Germany also agreed to establish a German-UAE Investment Council. This council will serve as a link between public institutions and private enterprises involved in bilateral investments. Additionally, both countries launched a Strategic Dialogue covering trade, energy, investment, technology, transport, education, security, and other areas of collaboration.
Digital Infrastructure Investment Bolsters Broader Economic Goals
The €40 billion investment plan is part of a series of substantial UAE-related investments in Germany. XRG has invested roughly €15 billion in Covestro, a major German chemicals firm. The two governments also highlighted business engagements involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the newly announced package and other agreements signed during the state visit. The wider economic agenda encompasses industrial growth, renewable energy, digital infrastructure, technological advancement, and investment relations between corporations and public entities from both countries.
Trade between the UAE and Germany has seen notable growth in recent years. Non-oil trade reached $15.5 billion in 2025, reflecting an increase of more than 14% compared to 2024. Cumulative investment flows between the two nations exceeded $10 billion from 2021 through 2025. The UAE and Germany also supported negotiations aimed at a comprehensive trade agreement between the UAE and the European Union. Both governments stated the negotiations should address bilateral trade and enhance the framework regulating their commercial relations.
Expanded UAE-Germany Partnership Through New Agreements
Beyond the core investment commitments, the visit yielded additional agreements covering energy, data centres, transportation, legal assistance, environmental cooperation, security, and information systems. The two sides also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as an official platform for ongoing cooperation across these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany and included meetings with senior German officials.
Germany and the UAE established their strategic partnership in 2004. The latest agreements introduce new investment and commercial initiatives into this existing framework. The €40 billion investment package remains the largest economic commitment announced during the visit. It includes €10 billion allocated to Bavaria and around 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at more than €9.356 billion further deepen the expanding economic ties between the two nations.