BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has outlined a plan to channel €40 billion into various key sectors within Germany. This financial commitment encompasses areas such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. German Chancellor Friedrich Merz participated in discussions regarding the new economic initiatives. The plan includes a dedicated €10 billion allocation for investments in Bavaria, securing a significant portion of the total funds for the region.
Digital infrastructure stands out as a focal point of the investment strategy. Both the UAE and Germany have laid out plans to develop advanced data centres with an aggregate capacity of about 1 gigawatt. Furthermore, both governments identified artificial intelligence and industrial technology as key sectors covered by the agreement. Germany has committed to supporting the necessary conditions for these data-centre projects. These developments expand the scope of economic accords announced during the visit, adding fresh commitments across the fields of technology, energy, and industrial growth.
Business deals formed a major component of the diplomatic visit, with companies from the UAE and Germany signing 29 agreements and memoranda valued at over €9.356 billion. The two nations also agreed to establish a German-UAE Investment Council to facilitate bilateral investments by linking public agencies and private enterprises. Additionally, both countries introduced a Strategic Dialogue covering trade, energy, investment, technology, transport, education, security, and other collaborative areas.
Digital initiatives boost economic cooperation
The €40 billion investment package builds upon existing large-scale UAE-related investments in Germany. XRG has already committed approximately €15 billion to Covestro, a leading German chemicals producer. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the state visit. The overarching economic strategy emphasizes industrial growth, renewable energy, digital infrastructure, technological advancement, and strengthened ties between corporate and public sectors in both nations.
Trade relations between the UAE and Germany have experienced notable growth in recent years, with non-oil trade reaching $15.5 billion in 2025, reflecting an increase of more than 14% from 2024. Cumulative investments from 2021 to 2025 have surpassed $10 billion. Both countries also backed negotiations for a comprehensive trade deal between the UAE and the European Union. Officials from both governments stated that these negotiations should aim to enhance bilateral trade and reinforce the existing framework for commercial relations.
Expanded UAE-Germany collaborations through new agreements
Beyond the core investment plan, the visit yielded agreements in sectors such as energy, data infrastructure, transport, legal assistance, environmental initiatives, security, and information systems. Both sides also agreed to explore establishing a framework for defence and security cooperation. The Strategic Dialogue will serve as a formal mechanism to continue collaboration across these fields. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany, featuring meetings with senior German officials.
Germany and the UAE have maintained a strategic partnership since 2004. The latest set of agreements introduces new investment and commercial measures within that existing framework. The €40 billion plan remains the most substantial economic commitment announced during the visit, including €10 billion allocated for Bavaria and approximately 1 gigawatt of data-centre capacity planned. The 29 new business agreements, valued at over €9.356 billion, further deepen the economic ties between the two nations.