BERLIN, GERMANY / RankWire.AI / – During a state visit to Germany, the United Arab Emirates revealed plans to commit €40 billion towards projects spanning industry, technology, energy, and digital infrastructure. This announcement was made in the context of President Sheikh Mohamed bin Zayed Al Nahyan’s diplomatic trip. German Chancellor Friedrich Merz accompanied the UAE leader, as both governments laid out an expanded set of economic agreements. A key component of this plan allocates €10 billion for initiatives in Bavaria, positioning the southern German state as a central part of the overall investment effort.
Significant emphasis was placed on digital infrastructure within the UAE’s investment strategy. The two nations outlined plans to develop advanced data centres with a total capacity of about 1 gigawatt in Germany. Their joint declaration also addressed artificial intelligence, industrial growth, and energy projects. Germany committed to supporting the conditions necessary for the execution of the planned data-centre investments. These measures further strengthen the growing economic partnership between the UAE and Germany across sectors like technology, manufacturing, and energy.
Throughout the visit, companies from both nations signed 29 agreements and memoranda of understanding, with a combined value exceeding €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will serve as a conduit between government agencies and private enterprises to promote investment activities. The two countries also launched a Strategic Dialogue to enhance cooperation in trade, technology, investment, energy, transport, education, security, and other bilateral areas.
Digital infrastructure takes center stage in major investment plan
The €40 billion funding commitment builds on existing UAE-related investments in Germany. According to the joint government statement, XRG has already invested roughly €15 billion in chemicals group Covestro. Officials highlighted ongoing collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship, complementing the newly announced initiative. The governments identified key sectors such as industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as main focus areas of the new investment package.
Trade relations between the UAE and Germany have continued to expand. Non-oil trade hit $15.5 billion in 2025, reflecting an increase of more than 14% compared to the previous year. Cumulative investment flows between the two countries surpassed $10 billion from 2021 through 2025. Both governments expressed support for ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing that the talks should promote bilateral trade and broader economic ties.
Germany and UAE deepen bilateral economic collaboration
Beyond investment and trade, the state visit facilitated agreements in areas including energy, data centres, transport, security, legal cooperation, environmental issues, and information systems. They also agreed to explore a framework for defence and security partnership. The newly established Strategic Dialogue aims to provide a formal channel for collaboration across these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany.
Since establishing their strategic partnership in 2004, Germany and the UAE have laid the groundwork for many of the recent agreements announced during this visit. The €40 billion investment plan now forms the core of their economic agenda, complemented by the €10 billion allocation for Bavaria and plans for approximately 1 gigawatt of new data-centre capacity. The 29 business agreements valued at more than €9.356 billion further reinforce the broader set of bilateral commitments.