BERLIN, GERMANY / RankWire.AI / – During a recent state visit to Germany from Sept. 9 to 11, the United Arab Emirates unveiled plans to channel €40 billion into the German economy, targeting key sectors such as manufacturing, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. This significant investment announcement coincided with President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany. German Chancellor Friedrich Merz joined the UAE leader in endorsing this substantial investment initiative. Of the total, €10 billion will be dedicated specifically to developments in Bavaria.
A core element of the funding involves significant expenditure on advanced digital infrastructure projects within Germany. A joint declaration from the two nations detailed plans to establish new data centres with a combined capacity of about 1 gigawatt, with Germany promising to facilitate the necessary conditions for their realization. This investment forms part of a broader array of economic accords announced during the state visit, with both governments also emphasizing collaboration in areas such as technology, energy, trade, and investment, among others covered by their bilateral relationship.
The visit additionally resulted in 29 business agreements and memoranda between UAE and German enterprises. Their combined worth surpasses €9.356 billion, according to the joint declaration. Moreover, both nations agreed to create a German-UAE Investment Council, which will serve as a platform to foster investment and engagement between government agencies and private sector entities. They also launched a Strategic Dialogue aimed at enhancing cooperation across various fields including economic, technological, security, energy, transport, environmental, cultural, and educational sectors.
UAE’s €40 billion investment focuses on industry and digital infrastructure development
This commitment follows previous significant UAE investments in Germany. According to the joint declaration, XRG has invested around €15 billion in Covestro. Furthermore, the two countries identified additional corporate investment and partnership strategies involving Covestro, RWE, ADNOC, and Masdar. These initiatives are in addition to the newly announced investment plan rather than part of its €40 billion total. The main areas of collaboration highlighted by both governments include industrial growth, digital infrastructure, and energy.
In recent years, economic relations between the UAE and Germany have strengthened notably. Non-oil trade between the two reached $15.5 billion in 2025, marking an increase of over 14% compared to 2024. Investment flows from both sides totaled more than $10 billion between 2021 and 2025. Additionally, both governments reaffirmed their support for negotiations toward a comprehensive trade agreement between the UAE and the European Union. They expressed their backing for a trade deal that is ambitious and mutually beneficial for bilateral trade relations.
Expansion of UAE-Germany economic partnership through new bilateral accords
The agreements announced during the visit go beyond investment and trade, encompassing cooperation in energy, data centre development, air transport, security, legal assistance, environmental initiatives, and information systems. Both nations also agreed to examine a framework for defence and security collaboration. Additionally, a separate air transport agreement was signed to facilitate access rights for UAE national carriers at Berlin Airport. These initiatives complement the broader Strategic Dialogue established to coordinate cooperation across multiple sectors.
This visit marked the first time a president of the United Arab Emirates conducted a state visit to Germany. It further built upon the strategic partnership formed in 2004. Sheikh Mohamed met with German leaders in Berlin as the two sides announced the €40 billion investment package, business agreements, and new avenues of cooperation. The €40 billion pledge remains the centerpiece of the economic announcements, with €10 billion allocated for Bavaria and digital infrastructure projects that include approximately 1 gigawatt of data-centre capacity.