BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed to injecting €40 billion into Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to the country. German Chancellor Friedrich Merz was present for discussions related to these new economic initiatives. The outlined plan allocates €10 billion specifically for projects in Bavaria, with a focus on artificial intelligence, cutting-edge technology, and initiatives linked to Germany’s industrial sector.
An integral part of the investment strategy involves a significant push for digital infrastructure, with both nations collaborating on the development of advanced data centres capable of approximately 1 gigawatt of total capacity. Germany expressed support for the conditions necessary to facilitate these projects. Broader cooperation will also extend to energy and industrial technology sectors. Officials presented these measures as part of a wider agreement package that emerged during the state visit, which brought together government representatives and corporate leaders from both countries.
During the visit, companies from the UAE and Germany formalized 29 agreements and memoranda valued at over €9.356 billion. Additionally, the two governments agreed to establish a German-UAE Investment Council, designed to serve as a platform for both public institutions and private entities engaged in bilateral investments. A newly formed Strategic Dialogue will focus on trade, investment, technology, energy, transport, education, security, and other relevant areas. These mechanisms are part of the broader suite of commitments announced during the official visit.
Data centre initiatives are central to the investment plan
The €40 billion initiative complements existing UAE-related investments in Germany, such as XRG’s €15 billion investment in the German chemicals firm Covestro. The governments have also acknowledged ongoing commercial activities involving Covestro, RWE, ADNOC, and Masdar as components of the broader bilateral relationship. These ongoing projects exist alongside the newly announced package rather than replacing it. The latest commitments span several sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between the nations has also seen significant growth, with UAE-Germany non-oil trade reaching $15.5 billion in 2025, marking an increase of over 14% from the previous year. Total investment flows from 2021 to 2025 surpassed $10 billion. Furthermore, both countries endorsed negotiations aimed at a comprehensive trade agreement between the UAE and the European Union, which would create a broader framework for commercial engagement and bilateral relations.
Broader agreements extend into multiple sectors beyond trade and investment
The state visit resulted in numerous agreements covering various fields. Both sides announced cooperation initiatives in energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will act as a formal channel to advance work in these areas. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates, signifying a new diplomatic milestone in the bilateral relationship.
Germany and the UAE formalized their strategic partnership in 2004, and recent announcements build on that foundation with additional investment and commercial measures. The €40 billion investment package remains the centerpiece of the economic commitments made during the visit, including €10 billion allocated to Bavaria and plans for approximately 1 gigawatt of data centre capacity. The 29 business agreements valued at more than €9.356 billion strengthen the economic ties across multiple sectors linked to the expanding partnership.