BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to channel €40 billion into Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. This significant funding pledge was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions related to the new economic commitments. A portion of the plan allocates €10 billion specifically for investments in Bavaria, encompassing artificial intelligence, cutting-edge technology, and projects linked to Germany’s industrial sector.
A key element of the investment strategy is a major digital infrastructure project. The UAE and Germany have outlined plans to develop advanced data centres with a combined capacity of about 1 gigawatt. Germany committed to supporting the necessary conditions to facilitate these initiatives. The broader framework also emphasizes collaboration in energy and industrial technology. Officials characterized these measures as part of a broader set of agreements reached during the state visit, which brought together government representatives and business leaders from both nations.
During the visit, companies from the UAE and Germany formalized their cooperation by signing 29 agreements and memoranda valued at over €9.356 billion. Both governments also agreed to establish a German-UAE Investment Council, which will serve as a platform for public institutions and private enterprises engaged in bilateral investments. Additionally, a new Strategic Dialogue will be created to address trade, investment, technology, energy, transport, education, security, and other sectors. These mechanisms form part of the broader set of initiatives announced during the official visit.
Data centres are central to the investment plan
The €40 billion initiative supplements existing UAE-related investments in Germany. For example, XRG has invested approximately €15 billion in the German chemicals firm Covestro. The governments also highlighted ongoing commercial engagements involving Covestro, RWE, ADNOC, and Masdar as part of the wider bilateral relationship. These projects are not replacements for, but rather additions to, the newly announced investment package. The commitments span multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Bilateral trade between the UAE and Germany has also seen growth. In 2025, non-oil trade between the two nations reached $15.5 billion, marking an increase of over 14% from the previous year. Cumulative investment flows between 2021 and 2025 exceeded $10 billion. Furthermore, both countries support negotiations for a comprehensive trade agreement between the UAE and the European Union. The governments stated that these talks should encompass bilateral trade relations and establish a broader framework for commercial cooperation.
Cooperation extends beyond trade and investment
The state visit resulted in agreements covering various additional sectors. Both sides announced joint efforts in energy, data centres, air transportation, legal assistance, environmental issues, security, and information technology. They also agreed to explore a framework for defense and security collaboration. The Strategic Dialogue will serve as an official channel for cooperation across these fields. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany, representing a significant diplomatic milestone in their bilateral relations.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The latest announcements introduce a new array of investment and commercial initiatives to this relationship. The €40 billion investment package remains the primary economic commitment from the visit, including €10 billion allocated for Bavaria and plans for about 1 gigawatt of data-centre capacity. The 29 business agreements valued at over €9.356 billion further reinforce the growing economic ties across multiple sectors connected to the expanding bilateral cooperation.