BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed plans to allocate €40 billion toward investment in Germany across key sectors deemed priorities, encompassing industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. This significant announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany from Sept. 9 to 11, where German Chancellor Friedrich Merz joined the UAE president in welcoming this comprehensive investment initiative. Out of the total, €10 billion is specifically dedicated to investments in Bavaria.
The proposed investment package emphasizes substantial expenditure on enhancing digital infrastructure within Germany. A joint declaration issued by the two governments outlined plans to establish new data centres with a combined capacity of approximately 1 gigawatt, with Germany committed to creating conditions conducive to their realization. This initiative is part of a broader set of economic accords announced during the state visit, with both nations also affirming their cooperation across areas such as technology, energy, trade, and investment as part of their bilateral partnership.
During the visit, 29 business agreements and memoranda of understanding were signed between UAE and German companies, with their combined value surpassing €9.356 billion according to the joint declaration. Additionally, both governments agreed to form a German-UAE Investment Council to serve as a platform for fostering investment and engagement between governmental agencies and private sector entities. The UAE and Germany also launched a Strategic Dialogue that will focus on economic, technological, security, energy, transport, environmental, cultural, and educational cooperation.
UAE’s €40 billion investment plan emphasizes industrial growth and digital development
This €40 billion pledge builds on previous major investments by the UAE in Germany, with XRG having committed around €15 billion to Covestro, as stated in the joint declaration. Both nations also identified additional corporate investment and strategic partnerships involving Covestro, RWE, ADNOC, and Masdar. These collaborations complement the newly announced investment plan rather than being included in its €40 billion total. The focus areas highlighted by the governments are industrial expansion, digital infrastructure, and energy.
In recent years, economic relations between the UAE and Germany have grown significantly, with non-oil trade reaching $15.5 billion in 2025, marking an increase of over 14% compared to 2024. Cumulative investments from both sides exceeded $10 billion during 2021-2025. Both governments also confirmed their support for negotiations on a comprehensive trade agreement between the UAE and the European Union, expressing support for a commercially ambitious deal that would strengthen bilateral trade ties.
Expansion of UAE-Germany economic relations through new bilateral accords
The agreements announced during the state visit extend beyond mere investment and trade, encompassing arrangements related to energy collaboration, data centre development, air transportation, security, legal cooperation, environmental initiatives, and information systems. Both nations also agreed to explore a framework for defence and security cooperation, with a separate air transport arrangement addressing access rights for UAE national carriers at Berlin Airport. These measures complement the broader Strategic Dialogue established by the governments to coordinate efforts across multiple sectors.
This visit marked the first time a UAE president has conducted a state visit to Germany, building upon the bilateral strategic partnership established in 2004. Sheikh Mohamed met with German leaders in Berlin, during which both sides announced the investment package, business agreements, and new cooperation mechanisms. The €40 billion commitment remains the headline figure among the economic announcements, with €10 billion allocated specifically to Bavaria and plans for digital infrastructure including about 1 gigawatt of data-centre capacity.