BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to channel €40 billion into various sectors in Germany, focusing on industry, technology, energy, and digital infrastructure. This significant funding was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz participated in discussions regarding these new economic commitments. The plan allocates €10 billion specifically for investments in Bavaria and encompasses artificial intelligence, cutting-edge technology, and initiatives linked to Germany’s industrial sector.
A key element of this investment scheme is the development of advanced digital infrastructure. The UAE and Germany outlined intentions to establish high-capacity data centres with approximately 1 gigawatt of combined power. Germany committed to fostering the conditions necessary for these projects to proceed. The overall package also emphasizes cooperation in energy and industrial technology. Officials described these measures as part of a broader set of agreements reached during the state visit, which involved government officials and corporate representatives from both nations.
During the visit, 29 agreements and memoranda of understanding were signed between companies from the UAE and Germany, collectively valued at over €9.356 billion. Additionally, the two governments agreed to create a German-UAE Investment Council, which will serve as a platform for public institutions and private enterprises engaged in bilateral investment. A new Strategic Dialogue will address areas such as trade, investment, technology, energy, transport, education, security, and more. Both countries incorporated these mechanisms into the comprehensive framework of announcements made during the state visit.
Data centres Play a Central Role in the Investment Strategy
The €40 billion initiative builds on existing UAE-related investments in Germany. XRG has already invested roughly €15 billion in German chemicals firm Covestro. The governments also highlighted ongoing commercial collaborations involving Covestro, RWE, ADNOC, and Masdar, which are considered part of the wider bilateral relationship. These projects complement, rather than replace, the newly announced investment plan. The recent commitments span multiple sectors including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade relations between the two nations have also grown. In 2025, UAE-Germany non-oil trade reached $15.5 billion, marking an increase of over 14% from the previous year. Between 2021 and 2025, combined investment flows surpassed $10 billion. Furthermore, the UAE and Germany endorsed negotiations for a comprehensive trade agreement between the UAE and the European Union, with the aim of establishing a broader commercial framework and enhancing bilateral trade relations.
Beyond Trade and Investment: Broader Bilateral Agreements
The state visit resulted in agreements across multiple additional domains. Both nations announced cooperation initiatives in energy, data centres, air transport, legal support, environmental issues, security, and information systems. They also agreed to explore a framework for defence and security cooperation. The Strategic Dialogue will facilitate ongoing collaboration in these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates, marking a significant diplomatic milestone in strengthening bilateral ties.
Germany and the UAE have maintained a strategic partnership since 2004. The latest set of announcements expands this relationship with new investment and commercial initiatives. The €40 billion investment package remains the primary economic commitment from the visit, including €10 billion designated for Bavaria and plans for roughly 1 gigawatt of data-centre capacity. The 29 business agreements worth more than €9.356 billion further solidify the expanding economic cooperation across multiple sectors tied to the growing partnership.