BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates revealed plans for a €40 billion investment across various sectors including industry, technology, energy, and digital infrastructure. The announcement was made in the context of high-level discussions, with German Chancellor Friedrich Merz participating in talks related to the new economic commitments. A notable part of the plan allocates €10 billion specifically to Bavaria, focusing on artificial intelligence, cutting-edge technology, and projects supporting Germany’s industrial sector.
A significant digital infrastructure component is integral to the investment program. The UAE and Germany have outlined plans for advanced data centres with an aggregate capacity of approximately 1 gigawatt. Germany committed to supporting the necessary conditions for these projects’ realization. Additionally, the broader package promotes collaboration in energy and industrial technology sectors. These initiatives were presented as part of a wider array of agreements achieved during the state visit, which brought together government officials and corporate representatives from both nations.
Between the two countries, companies signed 29 agreements and memoranda valued at over €9.356 billion. Furthermore, both governments agreed to establish the German-UAE Investment Council, which aims to serve as a platform connecting public institutions and private enterprises engaged in bilateral investment. As part of ongoing diplomatic engagement, a new Strategic Dialogue will be established to address trade, investment, technology, energy, transport, education, security, and other critical areas. These mechanisms are included within the larger framework of announcements made during the visit.
Data centres are central to the investment strategy
The €40 billion initiative builds upon existing UAE-related investments in Germany. For example, XRG has invested roughly €15 billion in the German chemicals firm Covestro. The governments have also identified commercial activities involving Covestro, RWE, ADNOC, and Masdar as elements of the broader bilateral economic ties. These projects are complementary to the newly announced investment package rather than replacing it. The latest commitments span multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade relations between Germany and the UAE have also seen substantial growth. In 2025, non-oil trade between the two nations reached $15.5 billion, reflecting an increase of more than 14% compared to the previous year. Cumulative investments from 2021 to 2025 have exceeded $10 billion. Moreover, both governments supported negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade relations and establish a broader framework for commercial cooperation.
Broader cooperation beyond trade and investment agreements
The state visit resulted in agreements extending into various other domains. Both sides committed to cooperation in areas including 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 serve as an official channel to facilitate cooperation across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates, representing a significant diplomatic milestone for the bilateral relationship.
Germany and the UAE established their strategic partnership in 2004. The latest set of announcements adds new investment and commercial initiatives to this framework. The €40 billion investment package remains the primary economic commitment stemming from the visit, including €10 billion allocated for Bavaria and plans for about 1 gigawatt of data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further reinforce economic ties across multiple sectors linked to the expanding bilateral relationship.