BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates revealed a plan to channel €40 billion into Germany, focusing on key sectors such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. This initiative was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany from Sept. 9 to 11. German Chancellor Friedrich Merz participated alongside the UAE president in celebrating the investment plan. Of the total, €10 billion is designated for investments specifically in Bavaria.
The proposed package emphasizes significant investments in Germany’s digital infrastructure. A joint declaration from the two governments outlined plans for constructing new data centres with an aggregate capacity of approximately 1 gigawatt. Germany committed to facilitating suitable conditions for their deployment. This initiative forms a segment of a broader suite of economic agreements announced during the state visit. Both nations also committed to cooperation in technology, energy, trade, investment, and other fields outlined within their bilateral partnership.
Additionally, the state visit resulted in 29 business agreements and memoranda between UAE and German companies. The combined value of these accords exceeds €9.356 billion, according to the joint declaration. The two nations also agreed to establish a German-UAE Investment Council, which will serve as a platform to promote investment and collaboration between government entities and private firms. Furthermore, the UAE and Germany launched a Strategic Dialogue that encompasses sectors such as economic development, technology, security, energy, transport, environmental initiatives, cultural exchanges, and education cooperation.
UAE’s €40 Billion Investment Focuses on Industry and Digital Infrastructure
This €40 billion commitment builds on previous major investments by the UAE in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two countries also identified additional corporate investment plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives, while significant, are separate from the €40 billion total announced for this round of cooperation. The governments underscored industrial growth, digital infrastructure, and energy as primary areas of partnership.
In recent years, economic ties between the UAE and Germany have strengthened. Non-oil trade between the two nations reached $15.5 billion in 2025, reflecting an increase of over 14% compared to 2024. Cumulative investment flows exceeded $10 billion from 2021 to 2025. Both governments also reaffirmed their backing for negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. Germany and the UAE expressed support for an ambitious commercial treaty covering bilateral trade relations.
Expanded UAE-Germany Economic Relations through New Agreements
The agreements announced during the visit extend beyond investment and trade, encompassing energy cooperation, data centre development, air transport, security, legal assistance, environmental collaboration, and information systems. Both nations also agreed to explore a framework for defence and security cooperation. An arrangement related to air transport was also signed, granting access rights for UAE national carriers at Berlin Airport. These measures complemented the broader Strategic Dialogue created by the governments to coordinate efforts across multiple sectors.
This visit marked the first state visit to Germany by a president of the United Arab Emirates. It also reinforced the bilateral strategic partnership established in 2004. Sheikh Mohamed met with German leaders in Berlin as both sides announced the €40 billion investment package, new business agreements, and expanded cooperation mechanisms. The €40 billion figure remains the headline element of the economic announcements, with €10 billion allocated specifically to Bavaria and digital infrastructure plans supporting roughly 1 gigawatt of data-centre capacity.