BERLIN, GERMANY / RankWire.AI / – A €40 billion investment initiative from the United Arab Emirates aims to significantly enhance Germany’s industry, technology, energy, and digital infrastructure sectors. This ambitious package was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. The discussions involved German Chancellor Friedrich Merz, focusing on new economic commitments. Notably, €10 billion of this plan is dedicated to investments within Bavaria, encompassing artificial intelligence, cutting-edge technology, and projects linked to Germany’s industrial base.
A key aspect of the investment initiative is a substantial digital infrastructure component. Both nations outlined plans to develop advanced data centres with approximately 1 gigawatt of combined capacity, with Germany supporting the conditions necessary for executing these projects. The broader agreement also promotes cooperation in energy and industrial technology. These measures were presented as part of a larger set of agreements signed during the state visit, which convened government officials and businesses from both countries.
A total of 29 agreements and memoranda of understanding, collectively valued at over €9.356 billion, were signed by companies from the UAE and Germany. Additionally, the two governments agreed to create a German-UAE Investment Council, providing a platform for public institutions and private enterprises engaged in bilateral investment. A new Strategic Dialogue will facilitate discussions on trade, investment, technology, energy, transport, education, security, and other sectors. Both nations included these mechanisms in the broader framework of agreements announced during the visit.
Data centres are central to the investment strategy
The €40 billion plan supplements existing UAE-related investments in Germany. For example, XRG has allocated around €15 billion to German chemicals firm Covestro. The governments also recognized commercial activities involving Covestro, RWE, ADNOC, and Masdar as part of the broader bilateral relationship, standing alongside the newly announced investment package rather than replacing it. These commitments span multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between the two countries has seen considerable growth, with UAE-Germany non-oil trade reaching $15.5 billion in 2025, marking an increase of more than 14% from the previous year. Cumulative investments exceeded $10 billion from 2021 to 2025. The UAE and Germany also supported negotiations for a comprehensive trade agreement between the UAE and the European Union, with the governments stating that these talks should cover bilateral trade relations and establish a broader framework for commercial activities.
Beyond trade and investment, bilateral agreements extend to various sectors
The state visit resulted in agreements covering additional areas such as energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also agreed to explore a framework for defense and security cooperation. The Strategic Dialogue will serve as a formal platform for collaboration across these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany, representing a significant diplomatic milestone for the bilateral relationship.
Germany and the UAE established their strategic partnership in 2004. The latest set of announcements introduces new investment and commercial initiatives within that framework. The €40 billion investment package remains the primary economic commitment resulting from the visit, including €10 billion allocated to Bavaria and plans for around 1 gigawatt of data-centre capacity. The 29 business agreements valued at more than €9.356 billion further bolster the growing economic ties through additional commitments across multiple sectors involved in bilateral cooperation.