BERLIN, GERMANY / RankWire.AI / – A substantial €40 billion investment from the United Arab Emirates is planned for Germany, targeting key industries including technology, artificial intelligence, digital infrastructure, energy, and manufacturing. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions concerning these new economic initiatives. Of this amount, €10 billion is allocated specifically for investments in Bavaria, making the state a key beneficiary of the overall plan.
Central to the announced investment strategy is the development of digital infrastructure. The UAE and Germany have jointly outlined plans to build advanced data centres with a combined capacity of roughly 1 gigawatt. The package also emphasizes artificial intelligence and industrial technology as priority sectors. Germany committed to facilitating the conditions necessary for the data-centre projects to proceed. These developments expand upon the economic agreements discussed during the visit, introducing new commitments in areas such as energy, technology, and industrial growth.
Facilitating business collaborations was a significant aspect of the trip, with companies from both nations signing 29 agreements and memoranda valued at over €9.356 billion. Furthermore, the UAE and Germany agreed to establish a German-UAE Investment Council to link public agencies and private sector entities engaged in bilateral investments. The two countries also launched a Strategic Dialogue focused on trade, energy, investment, technology, transport, education, security, and other areas of mutual cooperation.
Digital investments deepen economic collaboration
This €40 billion initiative follows previous major investments by the UAE in Germany. XRG has invested approximately €15 billion in Covestro, a leading German chemicals firm. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced plan and other agreements reached during the state visit. The broader economic cooperation encompasses industrial development, renewable energy, digital infrastructure, technology, and joint investment initiatives between companies and government institutions in both nations.
Trade relations between the UAE and Germany have experienced significant growth recently. Non-oil trade hit $15.5 billion in 2025, representing an increase of over 14% compared to 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both countries also supported negotiations toward a comprehensive trade agreement between the UAE and the European Union, with both governments stating that these talks should focus on enhancing bilateral trade and strengthening the framework of commercial relations.
Expansion of UAE-Germany cooperation through new agreements
Beyond the core investment package, the visit yielded agreements in sectors such as energy, data centres, transportation, legal services, environmental initiatives, 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 areas. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates and included meetings with top German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their economic and diplomatic ties. The latest agreements introduce additional investment and commercial measures within that existing framework. The €40 billion plan remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of data-centre capacity planned. The 29 business agreements valued at over €9.356 billion further strengthen the economic bonds between the two nations.