BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed €40 billion to investment projects across Germany, spanning sectors such as industry, technology, energy, and digital infrastructure. This substantial financial pledge was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. Alongside the UAE leader, German Chancellor Friedrich Merz participated in outlining a broader set of economic agreements between the two nations. Notably, €10 billion of this investment is designated for projects within Bavaria, positioning the southern German state as a key component of the announced initiative.
A considerable part of the UAE’s investment plan emphasizes digital infrastructure. The governments laid out plans for cutting-edge data centres with a combined capacity of approximately 1 gigawatt in Germany. The joint declaration also addressed advancements in artificial intelligence, industrial growth, and energy initiatives. Germany committed to facilitating conditions necessary for the execution of the planned data-centre investments. These measures strengthen an already expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, energy, and other commercial sectors.
During the visit, representatives from both countries signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, they agreed to establish a German-UAE Investment Council to connect government agencies with private-sector enterprises and promote investment activities. A new Strategic Dialogue was also launched, covering topics such as trade, technology, investment, energy, transport, education, and security, among other areas of bilateral collaboration.
Major Investment Plan Anchored by Digital Infrastructure
Following the €40 billion commitment, several significant UAE-related investments linked to Germany are already underway. According to the joint government declaration, XRG has invested approximately €15 billion in chemicals company Covestro. The officials also pointed out ongoing cooperation involving Covestro, RWE, ADNOC, and Masdar within the broader economic relationship. These projects complement the newly announced investment plan, which highlights industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as primary focus areas.
Trade relations between the UAE and Germany continue to grow. In 2025, non-oil trade reached $15.5 billion, reflecting an increase of over 14% compared to the previous year. Between 2021 and 2025, cumulative investment flows exceeded $10 billion. The two governments also supported ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing the importance of enhancing bilateral trade and fostering broader commercial ties.
Enhancement of Bilateral Economic Ties between Germany and UAE
The state visit resulted in agreements extending beyond investments and trade. Both nations announced cooperation initiatives in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. They also agreed to explore a framework for defence and security collaboration. The newly established Strategic Dialogue is intended to serve as a formal platform for joint efforts across these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates paid a state visit to Germany.
Since establishing their strategic partnership in 2004, Germany and the UAE have laid the groundwork for numerous agreements introduced during this visit. The recent €40 billion investment pledge takes center stage in their economic agenda, complemented by the €10 billion designated for Bavaria and plans for about 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further reinforce the commercial dimension of their broader bilateral commitments.