BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to channel €40 billion into Germany across multiple key sectors. This fund encompasses areas such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, with German Chancellor Friedrich Merz participating in discussions about the new economic commitments. A portion of €10 billion will be invested in Bavaria, representing a substantial share of the overall plan.
Digital infrastructure forms a key element of the proposed investment initiative. The UAE and Germany outlined plans to develop advanced data centres with a combined capacity of approximately 1 gigawatt. Both nations also identified artificial intelligence and industrial technology as focus areas covered by the package. Germany committed to supporting the necessary conditions for the data-centre projects, expanding the scope of economic agreements announced during the visit and introducing new commitments in technology, energy, and industrial development.
Business agreements represented another significant aspect of the visit, with companies from both countries signing 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council to connect public institutions and private companies involved in bilateral investment efforts. The two nations also launched a Strategic Dialogue addressing trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Expansion of Digital Investment Shapes Economic Goals
Following other substantial UAE-related investments in Germany, the €40 billion package further emphasizes economic ties. XRG has invested around €15 billion in Covestro, a major German chemicals firm. The two governments also highlighted business activity involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the state visit. The broader economic strategy emphasizes industrial development, clean energy, digital infrastructure, technological innovation, and corporate and public sector investment collaboration between the two countries.
In recent years, trade between the UAE and Germany has experienced notable growth, with non-oil trade reaching $15.5 billion in 2025, representing over a 14% increase from 2024. Cumulative investments from 2021 through 2025 exceeded $10 billion. Both nations also supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, with both sides noting that negotiations should enhance bilateral trade and reinforce the framework for commercial relations.
New Agreements Strengthen UAE-Germany Relations
Beyond the core investment package, the visit resulted in agreements covering energy, data centres, transport, legal aid, environmental cooperation, security, and information systems. Both countries agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal mechanism for ongoing cooperation across these sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a UAE president and included meetings with senior German leaders.
Germany and the UAE established their strategic partnership in 2004, and these latest agreements introduce new investment and trade measures into that existing relationship. The €40 billion package remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and around 1 gigawatt of data-centre capacity planned. The 29 business agreements valued at more than €9.356 billion further deepen the economic ties between the two nations.