BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has committed to investing €40 billion throughout Germany, targeting sectors such as industry, technology, energy, and digital infrastructure. This significant financial pledge was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz accompanied the UAE leader as both nations outlined an array of economic agreements. Notably, €10 billion of this investment is allocated for projects in Bavaria, positioning the southern German state as a key focus of the commitment.
A major component of the UAE’s investment plan centers on digital infrastructure. The two governments revealed plans to develop advanced data centres with a combined capacity of about 1 gigawatt in Germany. Their joint declaration also addressed artificial intelligence, industrial growth, and energy projects. Germany committed to creating a supportive environment for the implementation of these data-centre investments. These initiatives build upon an already growing economic partnership between the UAE and Germany in technology, manufacturing, energy, and other commercial sectors.
During the visit, representatives from both nations signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, they agreed to establish a German-UAE Investment Council, designed to link government agencies with private-sector companies and foster investment exchanges. A new Strategic Dialogue was also launched, covering trade, technology, investment, energy, transport, education, security, and other bilateral areas.
Digital infrastructure drives a substantial part of the investment plan
The €40 billion investment pledge follows several significant UAE-related projects linked to Germany. According to the joint government statement, XRG has invested approximately €15 billion in chemicals group Covestro. The cooperation also involves companies such as Covestro, RWE, ADNOC, and Masdar, forming part of the broader economic relationship. These projects complement the newly announced plan, with industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy highlighted as key sectors of focus.
Trade relations between the UAE and Germany continue to strengthen. Non-oil trade reached $15.5 billion in 2025, marking an increase of over 14% from the previous year. Investment flows between the two countries exceeded $10 billion from 2021 to 2025. Both governments expressed support for ongoing negotiations toward a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and broader commercial ties.
Enhanced economic collaboration between Germany and UAE
The state visit resulted in agreements spanning beyond investment and trade, including cooperation in energy, data centres, transport, security, legal aid, environmental issues, and information systems. Discussions also considered establishing a framework for defence and security collaboration. The new Strategic Dialogue will serve as a formal platform for cooperation across these areas. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates.
Since establishing their strategic partnership in 2004, Germany and the UAE have laid the groundwork for many of the agreements announced during this visit. The latest initiative centers around the €40 billion investment commitment, which includes €10 billion allocated for Bavaria and plans for roughly 1 gigawatt of new data-centre capacity. The 29 business agreements, valued at over €9.356 billion, add a further economic dimension to the broader bilateral agenda.