BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed plans to channel €40 billion into Germany across various strategic sectors. The investment encompasses areas such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. This announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany from Sept. 9 to 11. German Chancellor Friedrich Merz was present to welcome the UAE president and the investment initiative. Of the total amount, €10 billion will be directed toward investments in Bavaria.
The investment plan notably includes significant expenditure on advancing Germany’s digital infrastructure. A joint declaration from both governments outlined plans to develop new data centres with approximately 1 gigawatt of combined capacity. Germany committed to creating favorable conditions to support these projects. The €40 billion package forms part of broader economic agreements announced during the state visit. Both nations also agreed to cooperate in technology, energy, trade, and investment, among other areas covered by their bilateral partnership.
The visit also resulted in the signing of 29 business agreements and memoranda of understanding between UAE and German companies. The combined value of these agreements surpasses €9.356 billion, as stated in the joint declaration. Additionally, both countries agreed to establish a German-UAE Investment Council. This platform will facilitate investment and engagement between government agencies and private firms. Furthermore, the UAE and Germany launched a Strategic Dialogue focusing on economic, technological, security, energy, transport, environmental, cultural, and educational cooperation.
UAE’s €40 Billion Investment Focuses on Industry and Digital Infrastructure Development
This €40 billion commitment builds on previous major UAE investments in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two nations also identified additional corporate investment and partnership plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from the new investment package and do not count toward the €40 billion total. The governments highlighted cooperation in industrial development, digital infrastructure, and energy as key priorities.
Economic relations between the UAE and Germany have grown significantly in recent years. In 2025, non-oil trade between the two nations reached $15.5 billion, which is over a 14% increase from 2024. Cumulative investments from both sides exceeded $10 billion from 2021 to 2025. Both governments also expressed support for ongoing negotiations on a comprehensive trade agreement between the UAE and the European Union. They emphasized their backing for a commercially ambitious deal that would enhance bilateral trade relations.
Expansion of UAE-Germany Economic Relations Through New Agreements
The agreements announced during the visit extend beyond investments and trade. They include accords on energy cooperation, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. Both countries also agreed to explore a framework for defence and security collaboration. An additional air transport arrangement addressed access rights for UAE national carriers at Berlin Airport. These measures complemented the wider Strategic Dialogue created to coordinate cooperation across multiple sectors.
This visit marked the first time a president of the United Arab Emirates undertook a state visit to Germany. It also built upon the bilateral strategic partnership established in 2004. Sheikh Mohamed held meetings with German leaders in Berlin as both sides announced the investment package, business agreements, and new cooperation initiatives. The €40 billion commitment remains the headline figure, with €10 billion allocated to Bavaria and digital infrastructure projects involving about 1 gigawatt of data-centre capacity.