BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed to channel €40 billion into Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. This significant funding was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz accompanied the UAE leader as both governments outlined a broader framework of economic agreements. A notable part of this plan allocates €10 billion to projects in Bavaria, positioning the southern German state as a key component of the overall commitment.
A major element of the UAE’s investment plan centers on digital infrastructure. The two nations presented proposals for cutting-edge data centres with a total capacity of approximately 1 gigawatt in Germany. Their joint declaration also touched on topics such as artificial intelligence, industrial advancement, and energy initiatives. Germany pledged to support the establishment conditions necessary for the implementation of the planned data-centre projects. These initiatives further strengthen the expanding economic ties between the UAE and Germany across sectors including technology, manufacturing, and energy.
During the visit, companies from both countries signed 29 agreements and memoranda of understanding, with a combined worth surpassing €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council. This body will link government agencies with private-sector companies to foster increased investment activity between the two nations. Both governments also initiated a Strategic Dialogue to explore cooperation in trade, technology, investment, energy, transport, education, security, and other bilateral areas.
Digital infrastructure forms the backbone of the extensive investment initiative
The €40 billion pledge follows several major investments linked to the UAE in Germany. According to the joint government statement, XRG has invested approximately €15 billion in the chemicals firm Covestro. Officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within the scope of the broader economic partnership. These ongoing projects complement the newly announced investment plan. The governments identified industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as the primary sectors covered by this new initiative.
Trade relations between the UAE and Germany continue to grow, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% compared to the previous year. Cumulative investment flows from 2021 through 2025 have exceeded $10 billion. Both governments also expressed support for ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing that these discussions should promote bilateral trade and broader commercial cooperation.
Germany and UAE expand their economic partnership
The state visit resulted in agreements beyond investment and trade, including cooperation in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. The two nations also agreed to explore a framework for defence and security collaboration. The newly formed Strategic Dialogue will serve as an official platform to facilitate cooperation across these domains. 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 investment package underscores the €40 billion financial commitment as central to their economic agenda. The €10 billion designated for Bavaria and the plans for approximately 1 gigawatt of new data-centre capacity are also key components. The 29 business agreements valued at over €9.356 billion further add a commercial dimension to the broad spectrum of bilateral agreements announced during this state visit.