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    Home » UAE-Germany Economic Relations Strengthened with €40 Billion Investment Drive
    Business

    UAE-Germany Economic Relations Strengthened with €40 Billion Investment Drive

    September 11, 2026
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    BERLIN, GERMANY / RankWire.AI / – During a state visit to Berlin, the United Arab Emirates and Germany initiated a Strategic Dialogue and agreed to create a bilateral Investment Council. UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz attended the announcement of 12 government-level agreements, memoranda and declarations. These measures span sectors including investment, energy, technology, aviation, security, legal cooperation, environmental issues, data systems, and culture. They expand the framework of the UAE-Germany Comprehensive Strategic Partnership, established in 2004.

    UAE and Germany deepen ties with €40 billion investment
    UAE and Germany expand cooperation across investment, trade, energy and technology.

    The newly formed Strategic Dialogue aims to coordinate efforts across regional security, defence, trade, investment, energy, climate change, digitalisation, transportation, education, and emerging technologies. Both nations also signed a declaration of intent to set up the German-UAE Investment Council, which will serve as a platform for engagement between public and private sectors on investment initiatives. Additionally, officials revived the Joint Economic Committee to facilitate formal bilateral discussions on commercial and economic matters.

    Among the government agreements are new arrangements related to air transport access for UAE carriers to Berlin Airport. They also encompass cooperation in passenger processing, crime prevention, and mutual legal assistance in criminal cases. Separate documents address collaborations in defence and security, environmental policies, data hosting, and information systems. Both countries also committed to further energy cooperation and signed a memorandum on cultural exchange.

    Economic dimension enhanced through €40 billion investment package

    The visit resulted in an investment package worth 40 billion euros from the UAE to Germany. This package includes upgrades to digital infrastructure and plans to establish new data centres with around 1 gigawatt capacity. Furthermore, UAE and German companies signed over 29 business agreements and memoranda valued at more than 9.356 billion euros. These commercial arrangements complement the government agreements announced during the visit, broadening the scope of bilateral economic cooperation.

    Trade and investment figures illustrate the depth of existing economic ties. In 2025, UAE-Germany non-oil trade totaled $15.5 billion, reflecting an increase of more than 14% compared to the previous year. Cumulative investment flows between the two nations surpassed $10 billion from 2021 to 2025. Both governments also highlighted ongoing negotiations for a comprehensive trade agreement between the UAE and the European Union.

    Expansion of energy, tech, and transport collaborations

    The investment agenda includes additional corporate projects involving Covestro, RWE, ADNOC, and Masdar. Existing UAE-linked investments in Germany include XRG’s approximately 15 billion euro investment in Covestro. The two governments also identified key sectors such as liquefied natural gas, renewable energy, and hydrogen for continued cooperation. Their agreements additionally extend to digital infrastructure, artificial intelligence, and other advanced technologies within the broader bilateral framework.

    Spanning from September 9 to September 11, this visit marks the first time a UAE president has conducted a state visit to Germany. Discussions in Berlin covered economic cooperation, technology, energy, culture, education, and regional issues. The establishment of the Strategic Dialogue, Investment Council, and related agreements provides new formal channels for managing bilateral collaboration. The measures announced during the visit encompass government policies, investment initiatives, private-sector agreements, transport access, and major infrastructure projects.

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    UAE’s €40 Billion Investment Strategy to Boost Germany’s Key Industries and Digital Infrastructure

    Business September 11, 2026

    UAE and Germany expand economic ties with a €40 billion cross-sector investment plan. A significant portion of the funding will be directed toward enhancing digital infrastructure across Germany. The joint declaration from both governments detailed plans to establish new data centres with an aggregate capacity of approximately 1 gigawatt. Germany pledged to facilitate the conditions necessary for their development. This initiative forms part of a broader set of economic agreements unveiled during the state visit. Both nations also committed to cooperation in technology, energy, trade, investment, and other sectors integral to their bilateral relationship. The trip also resulted in the signing of 29 business agreements and memoranda of understanding between UAE and German firms, with their combined value surpassing €9.356 billion, according to the joint declaration. Furthermore, the two governments agreed to set up a German-UAE Investment Council, serving as a platform to promote investment and collaboration between government agencies and private enterprises. Additionally, a Strategic Dialogue was initiated, 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 pledge builds upon other substantial UAE investments in Germany. According to the joint declaration, XRG has invested around €15 billion in Covestro. The two countries also identified additional corporate investment and partnership plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from the newly announced investment package but complement the overarching €40 billion

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