BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to allocate €40 billion across various key sectors in Germany, encompassing industry, artificial intelligence, advanced technology, digital infrastructure, and energy. This significant investment plan was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany. During this visit, German Chancellor Friedrich Merz participated in discussions about the new economic commitments. Notably, €10 billion of this fund will go toward projects in Bavaria, representing a substantial portion of the overall initiative.
A core element of the announced investment is digital infrastructure. The UAE and Germany jointly outlined plans to develop advanced data centres with a combined capacity of around 1 gigawatt. Both nations also identified artificial intelligence and industrial technology as key focus areas of the package. Germany confirmed it will support the necessary conditions for data-centre projects. These announcements expanded the scope of economic agreements presented during the visit, introducing fresh commitments across sectors such as technology, energy, and industrial growth.
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. An agreement was also reached to establish a German-UAE Investment Council, which aims to connect public agencies and private firms involved in bilateral investments. Furthermore, both nations launched a Strategic Dialogue that will focus on trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Digital funding broadens economic collaboration
This €40 billion investment initiative complements other substantial UAE-related investments in Germany, such as XRG’s approximately €15 billion investment in Covestro, a major German chemicals enterprise. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects coexist with the newly announced package and other agreements signed during the state visit. The broader economic agenda emphasizes industrial growth, clean energy, digital infrastructure, technology, and the strengthening of investment ties between corporate and public sectors in both countries.
Trade relations between the UAE and Germany have seen recent growth, with non-oil trade reaching $15.5 billion in 2025, reflecting an increase of over 14% from 2024. Cumulative investment flows between the nations exceeded $10 billion from 2021 to 2025. Additionally, both governments backed negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and refine the framework governing their commercial relations.
Expanded UAE-Germany cooperation through new agreements
Beyond the core investment plans, the visit resulted in agreements covering sectors such as energy, data centres, transport, legal support, environmental cooperation, security, and information systems. A framework for defense and security cooperation was also proposed. The Strategic Dialogue will serve as a formal platform to advance work across these areas. Sheikh Mohamed’s trip marked the UAE president’s first state visit to Germany and included meetings with prominent German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The latest agreements add fresh investment and commercial initiatives to this longstanding relationship. The €40 billion package remains the largest economic commitment announced during the visit, with €10 billion dedicated 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 ties between the two nations.