BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany, the United Arab Emirates announced plans to channel €40 billion into various key sectors in the country. The comprehensive investment covers industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions concerning these new economic commitments. Notably, €10 billion of this fund is designated for projects in Bavaria, granting the region a substantial portion of the overall investment plan.
A significant focus of the declared funds is digital infrastructure, with both nations outlining plans for advanced data centres with approximately 1 gigawatt of total capacity. The agreement also emphasizes artificial intelligence and industrial technologies as core areas of development. Germany committed to facilitating the necessary conditions for the successful implementation of these data-centre projects. These announcements broaden the scope of economic agreements made during the visit and introduce new commitments in technology, energy, and industrial sectors.
Business collaborations constituted another key element of the visit, with companies from both countries signing 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which aims to connect public agencies and private enterprises involved in bilateral investments. The two nations also launched a Strategic Dialogue to facilitate cooperation in areas such as trade, energy, investment, technology, transport, education, and security.
Digital Investment Broadens Economic Goals
The €40 billion commitment continues a pattern of substantial UAE investments in Germany, including XRG’s nearly €15 billion investment in Covestro, a leading German chemicals manufacturer. 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 broader economic strategy aims to foster industrial growth, renewable energy, digital infrastructure, and technology cooperation between firms and government entities in both countries.
Trade relations between the UAE and Germany have also experienced growth in recent years. Non-oil trade reached $15.5 billion in 2025, reflecting an increase of over 14% compared to 2024. Total investment flows from 2021 to 2025 surpassed $10 billion. The two countries supported efforts to negotiate a comprehensive trade agreement between the UAE and the European Union, with both sides emphasizing that these negotiations should enhance bilateral trade and strengthen the framework for economic relations.
Expanded Cooperation Through New Agreements
Beyond the core investment package, the visit resulted in agreements covering energy, data centres, transportation, legal aid, environmental initiatives, security, and information systems. Both sides agreed to explore a framework for defence and security collaboration, with the Strategic Dialogue serving as a formal platform to advance cooperation across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates, including meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their economic and diplomatic ties. The latest agreements introduce additional investment and commercial measures within that existing framework. The €40 billion investment remains the most substantial economic commitment announced during this visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at more than €9.356 billion further deepen the economic relationship between these two nations.