BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to allocate €40 billion across various key sectors in Germany. This comprehensive investment includes areas such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. German Chancellor Friedrich Merz participated in discussions concerning these new economic commitments. A notable part of the plan allocates €10 billion specifically for investments in Bavaria, granting that region a significant share of the total fund.
Digital infrastructure is a pivotal element within the announced investment initiative. Both the UAE and Germany have outlined plans to develop advanced data centres with a combined capacity of approximately 1 gigawatt. The two governments have also identified artificial intelligence and industrial technology as priority sectors in the package. Germany has committed to supporting the conditions necessary for the success of the data-centre projects. These announcements have broadened the scope of economic agreements introduced during the visit, adding new commitments across technology, energy, and industrial growth sectors.
Business partnerships played a major role during the visit, with 29 agreements and memoranda signed between companies from the two nations, totaling more than €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, designed to connect government entities and private firms involved in bilateral investments. Both countries also launched a Strategic Dialogue to foster cooperation in trade, energy, investment, technology, transport, education, security, and other areas.
Digital Investment Boosts Broader Economic Ambitions
This €40 billion initiative follows previous significant UAE investments in Germany. XRG has contributed approximately €15 billion to Covestro, a leading German chemical enterprise. The two governments highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced financial package and other agreements signed during the state visit. The wider economic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technological advancement, and strengthened commercial and investment ties between the two nations.
Recent years have seen an increase in trade between the UAE and Germany, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% compared to 2024. Cumulative investments from 2021 to 2025 between both countries have surpassed $10 billion. Moreover, both nations supported negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and reinforce the framework governing their economic relations.
Expanded Cooperation Through New Agreements
Beyond the core investment commitments, the visit resulted in additional agreements addressing energy, data centres, transportation, legal support, environmental cooperation, security, and information systems. A framework for defence and security collaboration was also explored. The Strategic Dialogue will serve as a formal channel to facilitate ongoing cooperation in these sectors. Sheikh Mohamed’s visit marked the first state visit by an Emirati president to Germany, including meetings with high-ranking German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their economic and diplomatic engagement. The latest agreements introduce new investment and commercial initiatives to reinforce that existing relationship. The €40 billion investment package remains the most substantial economic commitment announced during the visit, with €10 billion allocated for Bavaria and approximately 1 gigawatt of data-centre capacity planned. The 29 business agreements, valued at over €9.356 billion, further deepen the economic bonds between the two nations, adding a new layer to their ongoing partnership.