BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed to pouring €40 billion into various sectors within Germany, including industry, technology, energy, and digital infrastructure. This substantial funding was revealed during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. German Chancellor Friedrich Merz participated in discussions related to 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 significant element of the investment plan centers around digital infrastructure. The UAE and Germany outlined ambitions for advanced data centres with a combined capacity of approximately 1 gigawatt. Germany pledged to facilitate the necessary conditions for the realization of these projects. Additionally, the broader package involves collaboration in energy and industrial technology. Officials described these measures as part of a wider array of agreements reached during the state visit, which brought together government representatives and corporate leaders from both nations.
During the visit, companies from the UAE and Germany formalized their partnership through 29 agreements and memoranda, collectively valued at over €9.356 billion. Both governments also committed to establishing a German-UAE Investment Council, serving as a platform for public institutions and private enterprises engaged in bilateral investment initiatives. A new Strategic Dialogue will also be initiated, focusing on trade, investment, technology, energy, transport, education, security, and other key sectors. These mechanisms were included as part of the broader set of announcements made during the official visit.
Data centres emerge as a crucial component of the investment strategy
The €40 billion initiative expands on existing UAE-related investments in Germany. For example, XRG has invested roughly €15 billion in the German chemicals firm Covestro. Furthermore, the governments highlighted ongoing commercial activities involving Covestro, RWE, ADNOC, and Masdar as elements of the expanding bilateral relationship. These projects exist alongside the newly announced investment package rather than replacing it. The commitments now announced span multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between the two nations has also seen growth. UAE-Germany non-oil trade was valued at $15.5 billion in 2025, reflecting an increase of more than 14% from the previous year. Cumulative investment flows during 2021-2025 exceeded $10 billion. Both countries also supported negotiations toward a comprehensive trade agreement between the UAE and the European Union, with officials stating that the talks aim to enhance bilateral trade relations and establish a broader commercial framework.
Agreements go beyond trade and investment collaborations
The state visit resulted in accords across several additional sectors. The two sides announced cooperation initiatives involving energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also agreed to explore a framework for defence and security cooperation. The Strategic Dialogue will serve as a formal channel for ongoing collaboration in these fields. 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 in the bilateral relationship.
Germany and the UAE formalized their strategic partnership in 2004, and the latest announcements introduce new investment and commercial measures to strengthen that alliance. The €40 billion investment package remains the key economic commitment from this visit, including €10 billion for Bavaria and plans to develop approximately 1 gigawatt of data-centre capacity. The 29 business agreements, valued at over €9.356 billion, further enhance cooperation across multiple sectors, reflecting the growing depth of economic ties between the two nations.