BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates revealed plans to channel €40 billion into the German economy, focusing on sectors such as industry, technology, energy, and digital infrastructure. The announcement was made alongside broader economic agreements between the two nations, with German Chancellor Friedrich Merz joining the UAE leader. A notable portion of this investment, €10 billion, is allocated for projects in Bavaria, emphasizing the importance of the southern German state within this initiative.
A key aspect of the UAE’s investment strategy is the development of digital infrastructure. The joint declaration outlined plans for creating state-of-the-art data centres with approximately 1 gigawatt of combined capacity in Germany. Discussions also encompassed artificial intelligence, energy initiatives, and industrial development. Germany committed to facilitating the necessary conditions for the execution of these data-centre investments. These efforts serve to strengthen the expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, and energy sectors.
During the visit, companies from both countries formalized 29 agreements and memoranda, collectively valued at over €9.356 billion. Additionally, the two governments agreed to establish a German-UAE Investment Council aimed at connecting government bodies with private enterprises and promoting cross-border investments. A new Strategic Dialogue was also launched, focusing on trade, technology, investment, energy, transport, education, security, and other areas of bilateral collaboration.
Digital infrastructure plays a central role in the large investment initiative
The €40 billion pledge builds upon previous significant UAE-related investments in Germany, with XRG reportedly investing around €15 billion in chemicals firm Covestro, as per the joint government statement. The cooperation extends to firms like Covestro, RWE, ADNOC, and Masdar, integrated into Germany’s broader economic relations. These projects complement the newly announced investment plan, with key focus areas including industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy sectors.
Trade relations between the UAE and Germany continue to strengthen. Non-oil trade surpassed $15.5 billion in 2025, representing a growth of over 14% compared to the previous year. Between 2021 and 2025, investment flows have totaled more than $10 billion. Both governments also agreed to advance negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and broader commercial ties.
Germany and UAE expand their economic cooperation
The state visit produced agreements extending beyond investment and trade. They included cooperation in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. The two sides also concurred on exploring a framework for defence and security collaboration. The newly formed Strategic Dialogue will serve as a formal mechanism for progress in these fields. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates paid an official state visit to Germany.
The strategic partnership between Germany and the UAE was initially established in 2004, creating a foundation for many of the accords announced during this visit. The latest economic package centers on the €40 billion investment commitment, with €10 billion specifically designated for Bavaria and plans for about 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at over €9.356 billion, add a commercial dimension to the broader bilateral initiatives outlined during the visit.