BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates is set to channel €40 billion into Germany, targeting industries such as manufacturing, technology, energy, and digital infrastructure. This significant financial commitment was revealed during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. Alongside him, German Chancellor Friedrich Merz participated as both nations highlighted a broad array of economic cooperation agreements. A notable portion of the investment, €10 billion, is designated for projects in Bavaria, positioning the southern German state as a key component of this financial pledge.
Digital infrastructure investment is a core element of the UAE’s financial plan. The two governments outlined intentions to develop state-of-the-art data centres with an aggregate capacity of approximately 1 gigawatt in Germany. Their joint statement also touched on artificial intelligence, industrial growth, and energy ventures. Germany committed to supporting the conditions necessary to realize the planned data-centre projects. These initiatives further strengthen the expanding economic partnership between the UAE and Germany, spanning sectors such as technology, manufacturing, and energy.
During the visit, companies from both nations signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, the two countries agreed to form the German-UAE Investment Council, designed to connect government agencies with private-sector firms and facilitate cross-border investments. A new Strategic Dialogue was also launched to foster cooperation in trade, technology, investment, energy, transport, education, security, and other areas of bilateral collaboration.
Digital infrastructure forms the backbone of the major financial commitment
This €40 billion investment effort builds upon existing UAE-linked projects in Germany. According to the joint government declaration, XRG has invested roughly €15 billion in chemicals conglomerate Covestro. Officials also noted collaborations involving Covestro, RWE, ADNOC, and Masdar as part of the broader economic ties. These initiatives supplement the new investment plan, with the governments highlighting industrial growth, advanced technologies, artificial intelligence, digital infrastructure, and energy as primary focus areas.
Trade between the UAE and Germany continues to expand. Non-oil commerce reached $15.5 billion in 2025, reflecting over a 14% increase from the previous year. Cross-border investments from both sides have surpassed $10 billion from 2021 through 2025. Furthermore, the two governments expressed support for ongoing negotiations for a comprehensive trade agreement between the UAE and the European Union, emphasizing the importance of enhancing bilateral trade and strengthening broader commercial relations.
Germany and UAE broaden their economic partnership through new cooperation initiatives
The state visit resulted in agreements extending beyond investment and trade, encompassing energy, data centres, transport, security, legal aid, environmental concerns, and information systems. They also committed to exploring a framework for defence and security collaboration. The newly established Strategic Dialogue will serve as a formal platform to advance work across these areas. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates has 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 agreements announced during this visit. The €40 billion investment commitment now stands at the core of their economic agenda. The plan also allocates €10 billion to Bavaria and aims to develop approximately 1 gigawatt of new data-centre capacity. The 29 business agreements worth more than €9.356 billion further enhance the economic scope of these bilateral efforts, complementing the broader set of announced initiatives.