BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates announced plans to allocate €40 billion across various key industries. This significant investment encompasses sectors such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions related to these new economic initiatives. Notably, the package includes a dedicated €10 billion investment fund for Bavaria, making it a crucial component of the overall strategy.
A major element of the announced plan is the development of digital infrastructure, with both nations outlining plans to establish advanced data centres with a combined capacity of approximately 1 gigawatt. Artificial intelligence and industrial technology have also been identified as key focus areas within this package. Germany committed to supporting the necessary conditions for the realization of the data-centre projects, which, along with other announcements, broaden the scope of economic agreements made during the visit and introduce fresh commitments in technology, energy, and industrial development sectors.
Business collaborations played a significant role during the visit, with companies from both countries signing 29 agreements 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 entities and private firms engaged in bilateral investments. The countries also launched a Strategic Dialogue that will address issues spanning trade, energy, investment, technology, transport, education, security, and other areas of mutual cooperation.
Digital sector investments deepen economic collaboration
The €40 billion funding plan builds on existing UAE-related investments in Germany, including XRG’s approximately €15 billion stake in Covestro, a leading German chemical firm. The two governments also emphasized ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the official visit. The overarching economic agenda emphasizes industrial growth, clean energy initiatives, digital infrastructure development, technological advancement, and strengthened investment ties between corporate and public sectors in both nations.
Recent years have seen an increase in trade between the UAE and Germany, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% compared to 2024. Cumulative investments from 2021 to 2025 between the two countries have exceeded $10 billion. Moreover, both governments supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, with the intention of addressing bilateral trade issues and reinforcing the framework for commercial relations.
Additional accords enhance UAE-Germany cooperation scope
Beyond the main investment package, the visit also yielded agreements spanning energy, data centres, transportation, legal assistance, environmental collaborations, security, and information systems. Both sides agreed to explore a framework for defence and security cooperation, with the Strategic Dialogue serving as a formal channel for ongoing collaboration across these domains. 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, with the latest agreements adding new investment and commercial measures to that existing framework. The €40 billion investment remains the largest economic commitment announced during this visit, including €10 billion allocated specifically for Bavaria and about 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at over €9.356 billion further reinforce the deepening economic relationship between the two nations.