BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed to investing €40 billion in Germany across sectors such as industry, technology, energy, and digital infrastructure. This significant pledge was announced during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. During the visit, German Chancellor Friedrich Merz joined the UAE leader as both nations outlined a broader range of economic agreements. The investment plan allocates €10 billion specifically for projects in Bavaria, positioning the southern German state as a key focus of the commitment.
A major component of the UAE’s investment package centers on digital infrastructure. The two governments detailed plans to develop advanced data centres with a combined capacity of about 1 gigawatt in Germany. Their joint declaration also addressed artificial intelligence, industrial growth, and energy initiatives. Germany agreed to support the conditions necessary for implementing the planned data-centre investments. These measures are part of an expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, energy, and other commercial sectors.
During the visit, companies from both countries signed 29 agreements and memoranda of understanding valued at over €9.356 billion. Additionally, the UAE and Germany agreed to create a German-UAE Investment Council. This council aims to connect government agencies with private-sector firms and facilitate investment activities between the two nations. Both parties also launched a Strategic Dialogue focused on trade, technology, investment, energy, transport, education, security, and other areas of bilateral cooperation.
Major Investment Package Anchored by Digital Infrastructure
The €40 billion investment pledge builds on several large UAE-related investments already linked to Germany. According to the joint government declaration, XRG has invested approximately €15 billion in chemicals group Covestro. The officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship. These projects complement the newly announced investment plan. The governments emphasized industrial development, cutting-edge technology, artificial intelligence, digital infrastructure, and energy among the main sectors covered by the new package.
Trade between the UAE and Germany continues to increase. In 2025, non-oil trade reached $15.5 billion, representing a growth of over 14% from the previous year. Cumulative investment flows between both countries surpassed $10 billion from 2021 through 2025. The two governments also supported ongoing negotiations for a comprehensive trade agreement between the UAE and the European Union. They indicated that these talks should promote bilateral trade and bolster broader economic links.
Germany and UAE Expand Their Bilateral Economic Collaboration
The state visit resulted in agreements extending beyond investment and trade. The two nations announced cooperation in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. They also agreed to explore a framework for defence and security collaboration. The new Strategic Dialogue will serve as a formal platform for cooperation in these sectors. 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 latest package positions the €40 billion investment commitment as a central element of their economic agenda. It also includes the €10 billion allocation for Bavaria and plans for approximately 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at over €9.356 billion, further add a commercial dimension to the broader set of bilateral commitments.