BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from Sept. 9 to 11, the United Arab Emirates unveiled plans to channel €40 billion into various strategic sectors within Germany. This financial commitment spans industries, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. The announcement was made in the context of the official visit, with German Chancellor Friedrich Merz joining the UAE president in endorsing the investment initiative. A portion, amounting to €10 billion, is designated specifically for investment efforts in Bavaria.
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 commitment. The main areas of cooperation highlighted by the governments include industrial growth, digital infrastructure, and energy sectors.
In recent years, economic relations between the UAE and Germany have grown significantly. Non-oil trade between the two countries reached $15.5 billion in 2025, representing over a 14% increase from 2024. Investment flows between them exceeded $10 billion from 2021 to 2025. Both governments also reaffirmed their support for negotiations toward a comprehensive trade agreement between the UAE and European Union. Germany and the UAE expressed their backing for a commercially ambitious deal that would cover bilateral trade relations.
Expansion of UAE-Germany Economic Collaboration Through New Agreements
Beyond investments and trade, the agreements signed during the visit encompass cooperation in energy, data centres, air transport, security, legal aid, environmental issues, and information systems. Both nations also agreed to explore a framework for defence and security collaboration. An air transport agreement was also signed to facilitate access rights for UAE national carriers at Berlin Airport. These measures are part of the broader Strategic Dialogue established to coordinate efforts across multiple sectors.
This visit marked the first state visit to Germany by a UAE president and built upon a bilateral strategic partnership established in 2004. Sheikh Mohamed met with German leaders in Berlin as both sides announced the investment package, business accords, and new cooperation initiatives. The €40 billion investment remains the headline figure, with €10 billion allocated to Bavaria and digital infrastructure plans supporting about 1 gigawatt of data-centre capacity.