BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany, the United Arab Emirates announced plans to allocate €40 billion across key industries. This comprehensive investment includes areas such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions about these new economic commitments. Notably, the package allocates €10 billion specifically for investments in Bavaria, granting the region a prominent share of the overall plan.
A core component of the investment initiative is digital infrastructure, with both nations outlining intentions to develop advanced data centres with approximately 1 gigawatt of combined capacity. Artificial intelligence and industrial technology are also prioritized within the package. Germany committed to facilitating the conditions necessary for the data-centre projects. These announcements broaden the scope of economic agreements made during the visit and introduce new commitments in technology, energy, and industrial growth.
Business collaborations formed a significant element of 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, intended to link public institutions with private enterprises involved in bilateral investments. A Strategic Dialogue was also launched, covering areas including trade, energy, investment, technology, transport, education, security, and other forms of cooperation.
Digital investments deepen economic collaboration
The €40 billion investment plan builds on previous major UAE-related ventures in Germany. XRG has invested approximately €15 billion in Covestro, a leading German chemicals company. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements made during the state visit. The broader economic strategy emphasizes industrial development, sustainable energy, digital infrastructure, technological advancement, and corporate and public sector investment ties between the nations.
Trade relations between the UAE and Germany have expanded notably in recent years, with non-oil trade reaching $15.5 billion in 2025, marking an increase of over 14% from 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both countries supported negotiations toward a comprehensive trade agreement between the UAE and the European Union. The aim is for the negotiations to address bilateral trade issues and enhance the framework regulating economic relations.
Additional accords enhance UAE-Germany partnership
Beyond the core investment package, the visit resulted in agreements covering sectors such as energy, data centres, transport, legal support, environmental cooperation, security, and information systems. An exploration of a framework for defence and security collaboration was also agreed upon. The Strategic Dialogue will serve as a formal mechanism for ongoing cooperation in these sectors. Sheikh Mohamed’s visit marks 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 economic and diplomatic ties. The latest agreements introduce new investment and commercial initiatives within that existing framework. The €40 billion package remains the most substantial economic commitment announced during the visit, with €10 billion earmarked for Bavaria and about 1 gigawatt of data-centre capacity planned. The 29 business agreements valued at more than €9.356 billion further deepen the economic relationship between the two nations.