BERLIN, GERMANY / RankWire.AI / – In a move reflecting strengthening economic ties, the United Arab Emirates has revealed plans to inject €40 billion into Germany, targeting various strategic sectors. The announced investment covers areas such as industry, cutting-edge technology, artificial intelligence, digital infrastructure and energy. This announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from Sept. 9 to 11. German Chancellor Friedrich Merz joined the UAE president in welcoming this substantial economic commitment. Of the total, €10 billion will be directed towards investments in Bavaria.
A core element of the investment plan involves substantial expenditure on enhancing digital infrastructure within Germany. The two governments released a joint declaration outlining plans for new data centres with an estimated combined capacity of about 1 gigawatt. Germany pledged to facilitate the conditions necessary for their deployment. This initiative is part of a broader suite of economic agreements announced during the state visit. Both nations also detailed cooperation in technology, energy, trade, investment, and other sectors integral to their bilateral partnership.
During the visit, 29 business agreements and memoranda were signed between UAE and German firms, with a total value exceeding €9.356 billion, as stated in the joint declaration. Furthermore, the two nations agreed to establish a German-UAE Investment Council, which will serve as a platform for fostering investment and collaboration between government entities and private companies. A new Strategic Dialogue was also launched, covering areas such as economic growth, technological development, security, energy, transport, environmental initiatives, cultural exchange, and education cooperation.
UAE’s €40 Billion Investment Focuses on Industry and Digital Infrastructure
This financial commitment builds on previous UAE investments in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two countries also identified additional corporate investment and collaboration plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from the announced €40 billion package but contribute to the overall economic relationship. Key areas of cooperation highlighted include industrial development, digital infrastructure, and energy sectors.
Economic interactions between the UAE and Germany have seen significant growth in recent years. Non-oil trade between the two reached $15.5 billion in 2025, representing an increase of more than 14% compared to 2024. Investment flows have also surpassed $10 billion from 2021 through 2025. Both governments confirmed their backing for negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. Germany and the UAE expressed support for a commercially ambitious deal covering bilateral trade relations.
Expanding UAE-Germany Economic Relations Through New Agreements
The agreements signed during the visit extend beyond investments and trade, encompassing energy collaboration, data centre development, air transport, security, legal assistance, environmental efforts, and information systems. Both nations also agreed to explore a framework for defence and security cooperation. An additional air transport agreement addressed access rights for UAE national carriers at Berlin Airport. These measures are part of the broader Strategic Dialogue, created to coordinate cooperation across multiple sectors.
This visit marked the first time a UAE president made a state visit to Germany. It also reinforced the bilateral strategic partnership established in 2004. Sheikh Mohamed met with German leaders in Berlin as both sides announced the investment plan, business agreements, and new cooperation initiatives. The €40 billion investment remains the headline figure of the economic announcements, with €10 billion allocated to Bavaria and digital infrastructure plans encompassing roughly 1 gigawatt of data-centre capacity.