BERLIN, GERMANY / RankWire.AI / – Plans have been unveiled by the United Arab Emirates to channel €40 billion into Germany, targeting multiple strategic industries. The funding encompasses sectors such as manufacturing, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. This declaration was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany from September 9 to 11. German Chancellor Friedrich Merz was present to welcome the investment initiative alongside the UAE president. Of this total, €10 billion will be directed toward Bavaria-based projects.
The proposed investment package emphasizes significant expenditure on digital infrastructure development within Germany. A joint statement from both governments outlined plans to establish new data centres with approximately 1 gigawatt of combined capacity, with Germany promising support to create favorable conditions for their realization. This initiative forms part of a broader set of economic agreements announced during the state visit. Both nations also highlighted their cooperation in areas such as technology, energy, trade, and investment, reinforcing their bilateral partnership.
The visit resulted in 29 business agreements and memoranda of understanding between UAE and German companies. Their combined value surpasses €9.356 billion, according to the joint declaration. Additionally, both nations agreed to form a German-UAE Investment Council, which will serve as a platform for fostering investment and engagement between government entities and private sector firms. A Strategic Dialogue covering economic, technological, security, energy, transport, environmental, cultural, and educational cooperation was also launched during the visit.
UAE’s €40 Billion Investment Focuses on Industry and Digital Infrastructure
Following other substantial investments by the UAE in Germany, the €40 billion commitment continues this trend. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. Both countries also identified additional corporate investments and partnership opportunities involving Covestro, RWE, ADNOC, and Masdar. These initiatives exist alongside the new investment package and are not included in the €40 billion total. The governments emphasized key cooperation areas such as industrial development, digital infrastructure, and energy sectors.
In recent years, economic links between the UAE and Germany have grown considerably. Non-oil trade between the nations reached $15.5 billion in 2025, marking a more than 14% increase from 2024. Cumulative investments from 2021 to 2025 exceeded $10 billion. Both governments also expressed their backing for ongoing negotiations towards a comprehensive trade agreement between the UAE and the European Union. They support a commercially ambitious accord that would enhance bilateral trade relations.
Expansion of UAE-Germany Economic Relations Through New Agreements
The agreements made during the visit extend beyond investment and trade, covering areas such as energy collaboration, data centres, air transport, security, legal cooperation, environmental initiatives, and information systems. Both nations also agreed to examine a framework for defence and security collaboration. An additional arrangement regarding air transport addressed access rights for UAE national carriers at Berlin Airport. These measures complement the broader Strategic Dialogue established to coordinate cooperation across multiple sectors.
This visit marked the first state visit of a UAE president to Germany. It built upon the bilateral strategic partnership formed in 2004. Sheikh Mohamed’s meetings with German leaders in Berlin coincided with the announcement of the investment package, business agreements, and new cooperation mechanisms. The €40 billion investment remains the most prominent headline, with €10 billion allocated to Bavaria and digital infrastructure projects designed to support approximately 1 gigawatt of data-centre capacity.