BERLIN, GERMANY / RankWire.AI / – A substantial investment of €40 billion by the United Arab Emirates in Germany’s industry, technology, energy, and digital infrastructure is set to take shape. This significant pledge was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany. As part of this visit, German Chancellor Friedrich Merz joined the UAE leader in announcing broader economic accords between the two nations. A key element of this plan allocates €10 billion specifically for projects in Bavaria, positioning the southern German state as a prominent beneficiary of the investment initiative.
A major focus within the UAE’s investment plan is digital infrastructure. Both governments outlined intentions to develop cutting-edge data centres with approximately 1 gigawatt of combined capacity in Germany. Their joint statement also highlighted collaborations in artificial intelligence, industrial advancement, and energy initiatives. Germany committed to facilitating the conditions necessary for the execution of these planned data-centre projects. These efforts bolster an expanding economic partnership spanning technology, manufacturing, energy, and other commercial sectors between the UAE and Germany.
During the visit, companies from both countries formalized their cooperation by signing 29 agreements and memoranda, totaling over €9.356 billion in value. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will link government bodies with private sector enterprises to stimulate investment activities. The two nations also launched a Strategic Dialogue to address trade, technology, investment, energy, transport, education, security, and other areas of bilateral cooperation.
Digital infrastructure forms a cornerstone of the extensive investment package
Following the €40 billion commitment, several significant investments linked to the UAE and Germany have already been identified. According to the joint government statement, XRG has invested approximately €15 billion in chemicals group Covestro. The officials also pointed out collaborations involving Covestro, RWE, ADNOC, and Masdar as part of the broader economic relationship. These projects are in addition to the newly announced investment plan, with key sectors including industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy.
Trade relations between the UAE and Germany continue to strengthen. Non-oil trade hit $15.5 billion in 2025, representing a growth of over 14% compared to the previous year. Cumulative investment flows from 2021 through 2025 surpassed $10 billion. Both governments also supported ongoing negotiations for a comprehensive trade agreement between the UAE and the European Union, emphasizing that these talks should enhance bilateral trade and broader commercial cooperation.
Germany and UAE expand their economic partnership
Beyond investment and trade, the state visit resulted in agreements on energy, data centres, transport, security, legal aid, environmental issues, and information systems. The two countries also agreed to explore a framework for defence and security collaboration. The newly established Strategic Dialogue will serve as a formal platform for cooperation across these sectors. Notably, Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates has made a state visit to Germany.
Since forming their strategic partnership in 2004, Germany and the UAE have laid the foundation for many of the agreements announced during this visit. The latest investment package places the €40 billion commitment at the core of their economic agenda. It also includes the €10 billion designated for Bavaria and plans for about 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at over €9.356 billion, add a significant commercial dimension to the broader bilateral initiatives.