BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to allocate €40 billion into Germany across key industries. This funding targets sectors such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany. German Chancellor Friedrich Merz participated in discussions regarding these new economic commitments. Of this total, €10 billion is designated for investments in Bavaria, making the state a major beneficiary of the overall plan.
Digital infrastructure is a key focus within the announced investment. The UAE and Germany revealed plans for advanced data centres with a combined capacity of about 1 gigawatt. Both nations also identified artificial intelligence and industrial technology as important areas of development. Germany committed to supporting the conditions necessary for these data-centre projects. These announcements expand on previous economic agreements and introduce new commitments related to technology, energy, and industrial growth.
Business partnerships played a significant role in the visit. Companies from both countries signed 29 agreements and memoranda valued at more than €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council. This council will link public agencies and private firms involved in bilateral investments. The two nations also launched a Strategic Dialogue covering trade, energy, investment, technology, transport, education, security, and other cooperation areas.
Digital sector investments boost broader economic plans
The €40 billion investment package builds on existing UAE-driven investments in Germany. XRG has invested around €15 billion in Covestro, a leading German chemicals company. Both governments also highlighted business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements made during the state visit. The overall economic strategy emphasizes industrial growth, renewable energy, digital infrastructure, technological collaboration, and investment links between companies and institutions in both countries.
Trade between the UAE and Germany has increased recently. In 2025, non-oil trade reached $15.5 billion, a rise of over 14% from 2024. Investment flows between the two nations exceeded $10 billion from 2021 to 2025. Both countries supported negotiations for a comprehensive trade agreement between the UAE and the European Union. They expressed that these talks should enhance bilateral trade and strengthen the framework for economic relations.
Additional agreements expand UAE-Germany collaboration
The visit also resulted in agreements beyond the core investment plan. Discussions covered energy, data centres, transport, legal assistance, environmental cooperation, security, and information systems. An exploration of a framework for defence and security cooperation was also agreed upon. The Strategic Dialogue will serve as a formal platform for ongoing work in these sectors. Sheikh Mohamed’s visit was the first state visit to Germany by a president of the United Arab Emirates and included meetings with senior German officials.
Germany and the UAE established their strategic partnership in 2004. The latest agreements introduce new investment and business measures into that existing relationship. The €40 billion package remains the largest economic commitment announced during the visit. It allocates €10 billion to Bavaria and plans for about 1 gigawatt of data-centre capacity. The 29 business agreements worth over €9.356 billion add further depth to the expanding economic ties between the two nations.