BERLIN, GERMANY / RankWire.AI / – During the state visit to Germany, the United Arab Emirates unveiled plans to channel €40 billion into the German economy across various key industries. The investment plan encompasses sectors such as industry, artificial intelligence, advanced technology, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s trip to Germany. German Chancellor Friedrich Merz participated in discussions related to these new economic commitments. Notably, €10 billion of the total will be invested in Bavaria, representing a significant portion of the overall plan.
A major component of the announced initiative focuses on digital infrastructure. The UAE and Germany outlined plans to develop state-of-the-art data centres with a combined capacity of around 1 gigawatt. Both nations also identified artificial intelligence and industrial technology as focal points within the package. Germany committed to supporting the necessary conditions for the data-centre projects. These developments expand upon the economic agreements introduced during the visit, adding new commitments across sectors such as technology, energy, and industrial growth.
Business collaborations also played a central role during the visit. Companies from both countries signed 29 agreements and memoranda totaling more than €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, aimed at connecting public institutions and private firms involved in bilateral investment initiatives. The two nations also launched a Strategic Dialogue to facilitate cooperation in trade, energy, investment, technology, transport, education, security, and other areas.
Digital Investment Bolsters Broader Economic Strategies
The €40 billion investment package builds on previous substantial UAE-related investments in Germany. XRG has allocated roughly €15 billion to Covestro, a leading German chemicals firm. The two governments also emphasized ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the state visit. The expanded economic strategy emphasizes industrial advancement, renewable energy, digital infrastructure, technological innovation, and strengthened investment connections between companies and government entities in both countries.
Trade relations between the UAE and Germany have also experienced growth recently. In 2025, non-oil trade hit $15.5 billion, reflecting a more than 14% increase from 2024. Cumulative investment flows from 2021 through 2025 surpassed $10 billion. Both nations supported negotiations for a comprehensive trade deal between the UAE and the European Union, with officials stating that the talks should focus on bilateral trade and enhancing the framework for commercial relations.
Additional Agreements Broaden UAE-Germany Collaboration
Beyond the core investment plan, the visit yielded agreements covering energy, data centres, transport, legal assistance, environmental cooperation, security, and information systems. Both sides also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal platform for ongoing cooperation in these sectors. Sheikh Mohamed’s trip marked the first time a president of the United Arab Emirates made a state visit to Germany, including meetings with senior German officials.
Germany and the UAE established their strategic partnership in 2004. The latest agreements introduce new investment and trade initiatives within that existing framework. The €40 billion package remains the most substantial economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of data-centre capacity planned. The 29 business agreements valued at over €9.356 billion add further depth to the expanding economic ties between the two nations.