BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany, it was announced that the United Arab Emirates intends to channel €40 billion into the German economy across multiple key sectors. This package encompasses industries such as artificial intelligence, advanced technology, digital infrastructure, and energy. The formal reveal was part of the discussions held with German Chancellor Friedrich Merz, with both leaders addressing new economic commitments. Notably, €10 billion of this investment is allocated specifically for Bavaria, positioning the state as a major beneficiary of the overall plan.
A pivotal element of the investment plan is digital infrastructure. The UAE and Germany jointly outlined plans to establish cutting-edge data centres with an approximate combined capacity of 1 gigawatt. Both governments recognized artificial intelligence and industrial technology as focal areas covered by the initiative. Germany committed to supporting the conditions necessary for the successful development of these data-centre projects. These announcements expanded the scope of economic agreements introduced during the visit, adding fresh commitments across the realms of technology, energy, and industrial development.
Another significant aspect of the visit involved business agreements. Companies from both nations signed a total of 29 accords and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council to facilitate investment activities. This council will serve as a bridge linking public institutions and private sector companies engaged in bilateral investments. Both governments also launched a Strategic Dialogue encompassing trade, energy, investment, technology, transport, education, security, and other cooperative areas.
Digital Investment Amplifies Broader Economic Goals
This €40 billion investment package continues a pattern of substantial UAE-linked investments in Germany. XRG has committed roughly €15 billion to Covestro, a leading German chemicals enterprise. The two governments highlighted ongoing business collaborations involving Covestro, RWE, ADNOC, and Masdar. These projects sit alongside the newly announced package and other agreements signed during the state visit. The wider economic agenda emphasizes industrial development, renewable energy, digital infrastructure, technology advancement, and strengthening investment ties between corporate and public entities in both countries.
Trade relations between the UAE and Germany have experienced notable growth recently. Non-oil trade hit $15.5 billion in 2025, reflecting an increase of over 14% from 2024. Cumulative investment flows between the two nations surpassed $10 billion from 2021 to 2025. Both countries also supported negotiations toward a comprehensive trade agreement between the UAE and the European Union, emphasizing that these talks should enhance bilateral trade and reinforce the framework governing commercial relations.
Expanded UAE-Germany Collaboration Through New Agreements
Beyond the core investment commitments, the visit resulted in agreements spanning energy, data centres, transport, legal assistance, environmental cooperation, security, and information systems. Both sides also agreed to explore a framework for defence and security cooperation. The Strategic Dialogue will serve as an official platform for ongoing collaboration across these sectors. Sheikh Mohamed’s visit marked the first state visit by a UAE president to Germany and included meetings with senior German leaders.
The strategic partnership established between Germany and the UAE in 2004 was reinforced by these latest agreements, which introduce new investment and commercial initiatives. The €40 billion package remains the most significant economic commitment announced during the visit, with €10 billion allocated to Bavaria and an estimated 1 gigawatt of data-centre capacity planned. The 29 business agreements, valued at more than €9.356 billion, add a further dimension to the expanding economic relationship between the two nations.