BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany, the United Arab Emirates revealed plans for a €40 billion investment across sectors such as industry, technology, energy, and digital infrastructure. German Chancellor Friedrich Merz participated in discussions related to these economic initiatives. The initiative allocates €10 billion specifically for Bavaria and encompasses areas including artificial intelligence, cutting-edge technology, and projects supporting Germany’s industrial sector.
A significant component of this funding involves expanding digital infrastructure, with the UAE and Germany outlining strategies for advanced data centres totaling roughly 1 gigawatt of combined capacity. Germany committed to fostering conditions conducive to the realization of these projects, while the overall package promotes cooperation in energy and industrial technology. Officials presented these measures as part of a broader suite of agreements made during the state visit, which convened government officials and corporate representatives from both nations.
In total, companies from the UAE and Germany signed 29 agreements and memoranda worth over €9.356 billion, with the two governments agreeing to launch a German-UAE Investment Council. This council aims to serve as a platform for public institutions and private enterprises engaged in bilateral investments. Additionally, a new Strategic Dialogue will focus on trade, investment, technology, energy, transport, education, security, and other domains. These mechanisms are part of the wider set of commitments announced during the visit.
Data centres play a central role in the investment plan
The €40 billion initiative complements existing UAE-related investments in Germany, such as XRG’s approximately €15 billion stake in the German chemicals firm Covestro. The governments also highlighted commercial activities involving Covestro, RWE, ADNOC, and Masdar as part of the expanding bilateral relationship, which coexist with the newly announced investments rather than replace them. The recent commitments span sectors including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between the two nations has also grown, with UAE-Germany non-oil trade reaching $15.5 billion in 2025, reflecting an increase of more than 14% compared to the previous year. Investment flows cumulatively surpassed $10 billion from 2021 to 2025. Both countries also supported negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to establish a broader framework for commercial activity and bilateral trade relations.
Beyond trade and investment, bilateral agreements expand
The state visit resulted in agreements across various fields, including 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 act as an official channel for progress in these sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates, representing a significant diplomatic milestone for the bilateral partnership.
Germany and the UAE established their strategic partnership in 2004, and the latest set of announcements adds new investment and commercial initiatives to that foundation. The €40 billion investment package remains the primary economic commitment from the visit, including €10 billion dedicated to Bavaria and plans for approximately 1 gigawatt of data-centre capacity. The 29 business agreements valued at more than €9.356 billion further solidify the expanding economic ties through commitments across multiple sectors linked to their growing relationship.