BERLIN, GERMANY / RankWire.AI / – During a recent state visit to Germany, the United Arab Emirates announced plans to channel €40 billion into various key sectors across the country. This funding encompasses areas such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The declaration was made in the context of President Sheikh Mohamed bin Zayed Al Nahyan’s official visit. German Chancellor Friedrich Merz participated in discussions concerning these new economic commitments. Of the total, €10 billion will be invested specifically in Bavaria, granting the state a substantial share of the overall plan.
A key focus within the announced investment initiative is digital infrastructure. Both the UAE and Germany outlined plans to develop advanced data centres with a total capacity of about 1 gigawatt. The two governments also identified artificial intelligence and industrial technology as priority areas covered by the package. Germany committed to supporting the necessary conditions for the data-centre projects. These announcements broaden the scope of economic agreements introduced during the visit and add fresh commitments across sectors such as technology, energy, and industrial growth.
Business collaborations formed a significant component of the visit. Companies from both nations signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will facilitate connections between public institutions and private sector firms engaged in bilateral investment. Both countries also launched a Strategic Dialogue to cover areas including trade, energy, investment, technology, transport, education, security, and other cooperative efforts.
Digital Investment Boosts Broader Economic Collaboration
The €40 billion initiative builds on existing substantial UAE-related investments in Germany. XRG has invested around €15 billion in Covestro, a major German chemicals firm. The two governments also emphasized ongoing business engagements involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the state visit. The wider economic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technological innovation, and investment collaborations between corporate and governmental entities from both countries.
Trade relations between the UAE and Germany have also seen notable growth recently. Non-oil trade hit $15.5 billion in 2025, reflecting an increase of over 14% compared to 2024. Cumulative investment flows between the two nations surpassed $10 billion from 2021 to 2025. The UAE and Germany also supported negotiations for a comprehensive trade agreement between the UAE and the European Union, with both governments stating that negotiations should focus on bilateral trade enhancement and strengthening the framework governing commercial exchanges.
Additional Agreements Broaden UAE-Germany Collaborative Efforts
Beyond the core investment plan, the visit resulted in agreements across multiple sectors including energy, data centres, transportation, legal aid, environmental initiatives, security, and information systems. Both nations also agreed to explore a framework for cooperation in defence and security. The Strategic Dialogue will serve as a formal platform for ongoing collaboration in these fields. Sheikh Mohamed’s trip marked the first state visit by an Emirati president to Germany and included meetings with senior German officials.
Germany and the UAE established their strategic partnership in 2004. The latest agreements introduce new investment and commercial measures into that existing relationship. The €40 billion investment package remains the most substantial economic commitment announced during the visit. It includes €10 billion allocated for Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at more than €9.356 billion add a further layer to the expanding economic ties between the two nations.