BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, it was announced that the United Arab Emirates plans to channel €40 billion into various key industries in Germany. The investment encompasses sectors such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions concerning these new economic commitments. Notably, €10 billion of this amount will be allocated for investments in Bavaria, representing a significant portion of the overall plan.
A major component of the announced investment is digital infrastructure. The UAE and Germany laid out plans for state-of-the-art data centres with a combined capacity of approximately 1 gigawatt. Both nations identified artificial intelligence and industrial technology as priority areas included in the package. Germany committed to supporting the necessary conditions for the data-centre projects. The declarations broadened the scope of economic agreements presented during the visit and introduced fresh commitments in technology, energy, and industrial development.
Another prominent aspect of the visit involved business agreements. Companies from both countries signed a total of 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will facilitate connections between public institutions and private enterprises involved in bilateral investments. The two nations also launched a Strategic Dialogue covering trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Digital sector investments deepen economic ties
Following other substantial UAE-related investments in Germany, the €40 billion plan continues to build on existing economic links. XRG has invested around €15 billion in Covestro, a leading German chemicals company. The two governments also highlighted 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 broader economic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technology, and investment collaborations between companies and public institutions in both nations.
Trade relations between the UAE and Germany have experienced notable growth recently. Non-oil trade reached $15.5 billion in 2025, marking an increase of over 14% compared to 2024. From 2021 to 2025, cumulative investment flows between the two countries surpassed $10 billion. Both nations supported negotiations towards a comprehensive trade agreement between the UAE and the European Union, aiming to address bilateral trade issues and reinforce the framework governing their commercial relations.
Additional accords expand UAE-Germany cooperation scope
Beyond the core investment package, the visit resulted in agreements spanning energy, data centres, transport, legal cooperation, environmental initiatives, security, and information systems. Discussions also included exploring a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal platform for ongoing work in these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates and involved meetings with top German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have added new investment and commercial initiatives through these latest agreements. The €40 billion investment remains the largest economic commitment announced during the visit, including €10 billion directed toward Bavaria and roughly 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at over €9.356 billion, further strengthen the expanding economic relationship between the two nations.