BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to channel €40 billion into Germany, focusing on sectors such as industry, technology, energy, and digital infrastructure. This sizable fund was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions linked to these new economic initiatives. The plan allocates €10 billion specifically for investment projects in Bavaria, with particular emphasis on artificial intelligence, cutting-edge technology, and initiatives supporting Germany’s industrial sector.
A significant part of this investment involves expanding digital infrastructure. Both nations outlined plans to develop advanced data centres with a total capacity of roughly 1 gigawatt. Germany pledged to support the necessary conditions for these projects to proceed. The broader package also promotes collaboration in energy and industrial technology. These measures were presented as part of a series of agreements finalized during the state visit, which brought together government officials and private sector representatives from both countries.
During the visit, companies from the UAE and Germany signed 29 agreements and memoranda worth over €9.356 billion. Additionally, both governments agreed to establish a German-UAE Investment Council. This council aims to serve as a platform for public institutions and private firms engaged in bilateral investment. A new Strategic Dialogue will address trade, investment, technology, energy, transport, education, security, and other sectors. These mechanisms were included as part of the broader set of announcements made during the visit.
Data centres play a vital role in the investment package
The €40 billion initiative complements existing UAE-related investments in Germany. For example, XRG has invested around €15 billion in German chemicals firm Covestro. The two governments also highlighted commercial activities involving Covestro, RWE, ADNOC, and Masdar as part of the broader bilateral relationship. These ongoing projects are separate from the newly announced investment package but are part of the same economic framework. The latest commitments span sectors such as industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between Germany and the UAE has also grown. In 2025, non-oil trade reached $15.5 billion, a rise of over 14% from the previous year. Total investment flows from both countries exceeded $10 billion from 2021 to 2025. The UAE and Germany also supported negotiations for a comprehensive trade agreement between the UAE and the European Union. The governments expressed that these talks should enhance bilateral trade and offer a broader framework for commercial cooperation.
Deals go beyond trade and investment collaborations
The state visit resulted in agreements across several other fields. Both nations announced cooperation in energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal platform for progress in these areas. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates, adding a significant milestone to their diplomatic ties.
Germany and the UAE established a strategic partnership in 2004. The recent announcements introduce new investment and trade initiatives within that framework. The €40 billion investment plan remains the key economic commitment from the visit. It includes €10 billion allocated for Bavaria and plans to develop about 1 gigawatt of data-centre capacity. The 29 business agreements valued at more than €9.356 billion further expand commercial links across various sectors linked to their growing economic relationship.