BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany, the United Arab Emirates announced a €40 billion investment plan targeting various sectors such as industry, technology, energy, and digital infrastructure. German Chancellor Friedrich Merz participated in discussions related to these new economic commitments. The initiative allocates €10 billion specifically for investment projects in Bavaria and encompasses artificial intelligence, cutting-edge technology, and initiatives linked to Germany’s industrial sector.
A significant component of the plan is the development of digital infrastructure. Both nations outlined strategies for constructing advanced data centres with a combined capacity of approximately 1 gigawatt. Germany committed to providing the conditions necessary for these projects to proceed. The broader package also emphasizes collaboration in energy and industrial technology. Officials described these measures as part of a wider array of agreements finalized during the state visit, which brought together representatives from government and business sectors of both countries.
In total, companies from the UAE and Germany signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, the two governments agreed to form a German-UAE Investment Council to serve as a platform for public institutions and private firms involved in bilateral investment. A new Strategic Dialogue will facilitate discussions on trade, investment, technology, energy, transport, education, security, and other key areas. Both nations included these mechanisms among the broader set of announcements made during the visit.
Data centres play a central role in the investment initiative
The €40 billion initiative supplements existing UAE-related investments in Germany. XRG has invested roughly €15 billion in the German chemicals company Covestro. The governments also highlighted ongoing commercial activities involving Covestro, RWE, ADNOC, and Masdar as part of the wider bilateral economic relationship. These projects are intended to complement the newly announced investment package rather than replace it. The latest commitments span several sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between the two countries has also seen growth, with UAE-Germany non-oil trade reaching $15.5 billion in 2025, marking an increase of over 14% compared to the previous year. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Furthermore, both nations supported negotiations toward a comprehensive trade agreement between the UAE and the European Union, aiming to create a broader framework for bilateral commercial relations. The governments emphasized that these talks should encompass trade, investment, and economic cooperation.
Beyond trade and investment, bilateral agreements cover a wide array of sectors
The state visit resulted in accords across multiple areas, including energy, data centres, aviation, legal support, environmental issues, security, and information systems. They also agreed to develop a framework for defence and security collaboration. The Strategic Dialogue will formalize cooperation efforts across these fields. 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 bilateral ties.
Germany and the UAE established their strategic partnership in 2004. The recent set of announcements introduces new investment and commercial measures to expand that relationship. The €40 billion investment package remains the primary economic commitment stemming from the visit, including €10 billion designated for Bavaria and plans for approximately 1 gigawatt of data-centre capacity. The 29 business agreements valued at more than €9.356 billion further strengthen bilateral economic cooperation across several sectors linked to the growing partnership.