BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed €40 billion to German industries, covering key areas such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. This significant funding was announced during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. In discussions surrounding the new economic initiatives, German Chancellor Friedrich Merz participated. Notably, €10 billion of the total is allocated for investments in Bavaria, highlighting the state’s substantial share of the broader plan.
A core element of this investment strategy is the enhancement of digital infrastructure. The UAE and Germany outlined plans to develop advanced data centres with approximately 1 gigawatt of combined capacity. Both nations also emphasized artificial intelligence and industrial technology as focal points of the package. Germany pledged support for the necessary conditions to facilitate these data-centre projects. These developments extend the scope of economic agreements introduced during the visit, incorporating new commitments in technology, energy, and industrial growth.
Economic cooperation was further reinforced through business agreements. A total of 29 deals and memoranda of understanding were signed, collectively valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council to connect public institutions and private enterprises involved in bilateral investment efforts. Both nations also launched a Strategic Dialogue that will address trade, energy, investment, technology, transport, education, security, and other areas of collaboration.
Digital sector investments deepen economic ties
This €40 billion investment package builds upon prior large-scale UAE-related projects in Germany. For instance, XRG has invested around €15 billion in Covestro, a leading German chemical firm. The two governments also highlighted ongoing business collaborations involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the newly announced investment plan and other agreements signed during the state visit. The wider economic agenda encompasses industrial advancement, renewable energy, digital infrastructure, technological innovation, and strengthened investment links between corporate and public sectors of both nations.
Trade between the UAE and Germany has seen substantial growth recently. In 2025, non-oil trade reached $15.5 billion, reflecting an increase of over 14% compared to 2024. Cumulative investments between the two countries exceeded $10 billion from 2021 to 2025. Furthermore, both nations supported negotiations toward a comprehensive trade agreement between the UAE and the European Union, aiming to improve bilateral trade and reinforce the framework governing their economic relations.
Additional agreements broaden UAE-Germany collaboration
Beyond the core investment package, the visit led to agreements in areas such as energy, data centres, transport, legal cooperation, environmental initiatives, 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 mechanism to continue work across these sectors. Sheikh Mohamed’s visit marked the first state visit by a president of the United Arab Emirates to Germany and included meetings with top German leaders.
Germany and the UAE formed their strategic partnership in 2004. The latest accords introduce new investment and trade measures to strengthen this relationship. The €40 billion package remains the largest economic commitment announced during the visit, with €10 billion allocated for Bavaria and about 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further deepen the economic ties between the two nations, adding new dimensions to their ongoing cooperation.