BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates revealed plans to channel €40 billion into various sectors including industry, technology, energy, and digital infrastructure. German Chancellor Friedrich Merz participated in discussions centered on these new economic commitments. The initiative allocates €10 billion specifically for investments in Bavaria and encompasses fields such as artificial intelligence, cutting-edge technology, and projects supporting Germany’s industrial foundation.
A significant element of the investment strategy is the development of advanced digital infrastructure. The UAE and Germany have outlined plans to establish sophisticated data centres with a total capacity of approximately 1 gigawatt. Germany committed to facilitating the conditions necessary for the execution of these projects. The broader package also emphasizes cooperation in energy and industrial technology sectors. Officials characterized these measures as part of a larger set of agreements finalized during the state visit, which united government representatives and corporate leaders from both nations.
In total, companies from the UAE and Germany signed 29 accords and memoranda valued at over €9.356 billion. Additionally, the two governments agreed to create a German-UAE Investment Council, designed to serve as a platform for public agencies and private enterprises engaged in bilateral investment efforts. The establishment of a new Strategic Dialogue will facilitate collaboration across trade, investment, technology, energy, transport, education, security, and other key sectors. These mechanisms are part of the extensive agreements announced during the official visit, highlighting the deepening partnership.
Data centres are central to the investment initiative
The €40 billion plan enhances existing UAE-related investments in Germany. For instance, XRG has committed approximately €15 billion to German chemicals firm Covestro. Both governments identified commercial activities involving Covestro, RWE, ADNOC, and Masdar as integral to their broader bilateral relationship, complementing the newly announced financial commitments rather than replacing them. The latest agreements span multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between Germany and the UAE has continued to grow, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% from the previous year. Total investment flows from 2021 to 2025 surpassed $10 billion. Both countries also expressed support for negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, hoping to create a framework that broadens bilateral trade and commercial cooperation.
Partnerships extend into multiple sectors beyond trade and investment
The state visit resulted in agreements covering a diverse range of topics. The two nations announced cooperation in energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also committed to exploring a formal structure for defence and security collaboration. The Strategic Dialogue will provide an official channel to advance cooperation across these fields. Sheikh Mohamed’s trip marked the first time a president of the United Arab Emirates made a state visit to Germany, marking a notable milestone in their diplomatic relations.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The latest initiatives introduce new investment and commercial measures, with the €40 billion investment package remaining the primary economic commitment from the visit. It includes €10 billion allocated for Bavaria and plans for roughly 1 gigawatt of data-centre capacity. The 29 business agreements valued at more than €9.356 billion reinforce their growing economic ties across multiple sectors, reflecting an intensified bilateral relationship.