BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany, the United Arab Emirates revealed plans to invest €40 billion across various sectors including industry, technology, energy, and digital infrastructure. This significant funding package was unveiled alongside the broader set of economic agreements discussed by both nations, with German Chancellor Friedrich Merz participating in the announcement. Notably, €10 billion of this investment is earmarked for projects in Bavaria, positioning the southern German region as a key beneficiary of the overall commitment.
A substantial portion of the UAE’s investment aims to enhance digital infrastructure, with plans to develop advanced data centres in Germany boasting a combined capacity of approximately 1 gigawatt. The joint declaration also addressed advancements in artificial intelligence, industrial growth, and energy initiatives. Germany committed to supporting the necessary conditions for the execution of these data-centre projects. These initiatives serve to strengthen an already growing economic partnership between the UAE and Germany that spans technology, manufacturing, energy, and other commercial industries.
Throughout the visit, companies from both countries formalized 29 agreements and memoranda of understanding, with a total combined value surpassing €9.356 billion. An additional outcome was the establishment of the German-UAE Investment Council, designed to link government agencies with private sector firms and foster increased investment activities between the two nations. Both governments also launched a Strategic Dialogue that will explore cooperation areas including trade, technology, investment, energy, transport, education, security, and other bilateral issues.
Digital infrastructure plays a central role in the expansive investment initiative
The €40 billion commitment follows several notable UAE-related investments already linked to Germany, such as XRG’s approximately €15 billion investment in chemicals giant Covestro, as highlighted in the joint government declaration. Officials also pointed to ongoing collaborations involving Covestro, RWE, ADNOC, and Masdar, which are part of the broader economic relationship and are set alongside the newly announced investment plan. The primary focus areas outlined in the package include industrial development, cutting-edge technology, artificial intelligence, digital infrastructure, and energy sectors.
Trade figures between the UAE and Germany have also experienced consistent growth, with non-oil trade reaching $15.5 billion in 2025—a rise of over 14% compared to the previous year. From 2021 to 2025, cumulative investment flows between the two nations exceeded $10 billion. Both governments expressed support for ongoing discussions toward a comprehensive trade agreement between the UAE and the European Union, emphasizing that such negotiations should enhance bilateral trade and bolster broader commercial connections.
Germany and UAE expand their economic partnership
The state visit resulted in agreements beyond the realms of investment and trade, including cooperation frameworks in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. They also committed to exploring a potential framework for defence and security collaboration, with the new Strategic Dialogue serving as an official conduit for joint efforts across these sectors. This visit was particularly historic as it marked the first time a president of the United Arab Emirates conducted a state visit to Germany.
Since establishing their strategic partnership in 2004, Germany and the UAE have laid the groundwork for numerous agreements, with the current €40 billion investment plan placing particular emphasis on this relationship. The package includes €10 billion designated for Bavaria and the development of approximately 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at over €9.356 billion, add a significant commercial dimension to the broad range of bilateral accords announced during the visit.