BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to channel €40 billion into Germany, targeting a variety of key industries. This substantial financial commitment was announced during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. The discussions involving German Chancellor Friedrich Merz centered on new economic initiatives. Notably, €10 billion of this investment is earmarked for Bavaria, representing a significant portion of the overall plan.
A key element of the investment plan focuses on digital infrastructure. Both nations outlined intentions to develop advanced data centres with a total capacity of about 1 gigawatt. The package also emphasizes artificial intelligence and industrial technology as priority sectors. Germany committed to facilitating the conditions necessary for the data-centre projects to proceed. These developments expand the scope of economic agreements unveiled during the visit, reinforcing commitments in technology, energy, and industrial growth.
Facilitating business cooperation was another major aspect of the visit. Companies from both countries signed 29 agreements and memoranda valued at more than €9.356 billion. An important outcome was the formation of a German-UAE Investment Council, which will connect public entities and private enterprises engaged in bilateral investments. Additionally, a Strategic Dialogue was launched, covering areas such as trade, energy, investment, technology, transport, education, security, and other sectors of mutual interest.
Digital Economic Strategies Grow with €40 Billion Commitment
This €40 billion investment initiative follows other significant UAE-related investments in Germany. XRG has already invested roughly €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 strategy encompasses industrial growth, renewable energy, digital infrastructure, technological innovation, and strengthening company-to-government investment ties.
Trade relations between the UAE and Germany have experienced notable growth recently. Non-oil trade hit $15.5 billion in 2025, marking an increase of over 14% compared to 2024. Bilateral investment flows from 2021 to 2025 exceeded $10 billion. Both nations also backed negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and reinforce the framework for commercial cooperation.
Expanding UAE-Germany Partnerships Through New Agreements
Beyond the core investment plan, the visit led to additional agreements covering energy, data centres, transport, legal aid, environmental initiatives, security, and information systems. The two sides agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal mechanism to continue progress in these fields. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates, including meetings with top German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The latest agreements introduce new investment and commercial initiatives to this existing relationship. The €40 billion package remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements worth more than €9.356 billion further deepen the economic bonds between the two nations.