BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to allocate €40 billion toward Germany in various sectors, including industry, technology, energy, and digital infrastructure. This significant funding was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz accompanied the UAE leader, as both nations outlined a broader spectrum of economic accords. The investment initiative dedicates €10 billion specifically for projects in Bavaria, positioning the southern German region as a key element of this announced commitment.
A substantial portion of the UAE’s investment package is allocated to digital infrastructure. Plans for advanced data centres, with a combined capacity of about 1 gigawatt in Germany, were part of the joint declaration. The document also addressed artificial intelligence, industrial progress, and energy initiatives. Germany has committed to facilitating the conditions necessary for the execution of the planned data-centre investments. These efforts build upon a growing economic partnership between the UAE and Germany in fields such as technology, manufacturing, and energy, among others.
During the visit, companies from both nations signed 29 agreements and memoranda of understanding valued collectively at over €9.356 billion. An agreement was also reached to establish a German-UAE Investment Council, designed to connect government entities with private companies and promote investment exchanges. Additionally, both governments launched a Strategic Dialogue that will address trade, technology, investment, energy, transport, education, security, and other bilateral cooperation areas.
Digital infrastructure as a key pillar of the investment initiative
The €40 billion commitment continues a series of major UAE-related investments linked to Germany. According to the joint government declaration, XRG has invested approximately €15 billion in chemicals company Covestro. The declaration also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship. These projects complement the newly announced investment plan. Among the main sectors targeted by the new package are industrial development, cutting-edge technology, artificial intelligence, digital infrastructure, and energy.
Trade figures between the UAE and Germany have experienced steady growth. In 2025, non-oil trade reached $15.5 billion, reflecting an increase of over 14% compared to the previous year. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both governments also supported ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing the importance of bilateral trade and broader commercial relations.
Expansion of bilateral economic cooperation between Germany and UAE
The state visit resulted in agreements extending beyond investment and trade. Cooperation initiatives in energy, data centres, transportation, security, legal support, environmental issues, and information systems were announced. An exploration of a framework for defence and security collaboration was also agreed upon. The new Strategic Dialogue will serve as a formal channel for advancing work in these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates paid a state visit to Germany.
Since establishing their strategic partnership in 2004, Germany and the UAE have laid the groundwork for many of the recent agreements. The current €40 billion investment commitment is a central element of their economic agenda. The package also includes the €10 billion allocation for Bavaria and plans for approximately 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.