BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany, the United Arab Emirates announced plans to allocate €40 billion across various key industries within the country. This financial package encompasses sectors such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions concerning these new economic initiatives. Notably, €10 billion of this investment will be directed toward Bavaria, securing a prominent portion of the overall commitment.
A primary focus of the investment is digital infrastructure, with both nations outlining plans for state-of-the-art data centres capable of about 1 gigawatt combined capacity. Artificial intelligence and industrial technology are also targeted areas, with Germany pledging to support the conditions necessary for the development of these data-centre projects. These announcements broaden the scope of economic agreements made during the visit, introducing fresh commitments in technology, energy, and industrial sectors.
Another significant element of the visit involved business agreements. Representatives from both countries signed 29 accords and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council designed to link public institutions and private enterprises involved in bilateral investments. A new Strategic Dialogue was also launched to facilitate cooperation in trade, energy, investment, technology, transport, education, security, and other fields.
Digital commitments bolster broader economic collaboration
The €40 billion investment plan builds upon previous substantial UAE-related investments in Germany, such as XRG’s approximately €15 billion investment in Covestro, a leading German chemicals firm. The two governments also highlighted ongoing collaborations involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the new package and other agreements signed during the official visit. The wider economic strategy focuses on industrial growth, renewable energy, digital infrastructure, technological advancement, and strengthening commercial ties between companies and institutions in both nations.
Trade relations between the UAE and Germany have experienced steady growth, with non-oil trade reaching $15.5 billion in 2025, representing an increase of over 14% from 2024. Investment flows between the two countries totaled more than $10 billion from 2021 to 2025. Both countries also supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing that discussions should enhance bilateral trade and reinforce the framework for their commercial relationship.
Expanded UAE-Germany cooperation through new agreements
Beyond the core investment plans, the visit led to agreements covering energy, data centres, transport, legal aid, environmental collaboration, security, and information systems. The two nations also agreed to explore a framework for cooperation in defence and security matters. The Strategic Dialogue will serve as a formal channel for ongoing collaboration across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates and included meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The recent agreements introduce new investment and commercial initiatives into that existing relationship. The €40 billion package remains the most substantial economic commitment announced during the visit, featuring €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further deepen the economic bond between the two countries.