BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany, the United Arab Emirates unveiled an ambitious plan to inject €40 billion into the German economy, targeting sectors such as industry, technology, energy, and digital infrastructure. The announcement was made in the context of the state visit, which also saw German Chancellor Friedrich Merz participating in discussions related to these new economic initiatives. A significant portion of this funding, €10 billion, is earmarked specifically for Bavaria. The package also emphasizes investments in artificial intelligence, cutting-edge technology, and projects linked to Germany’s industrial base.
Key to the plan is a substantial digital infrastructure component. Both nations laid out plans for advanced data centres with an aggregate capacity of approximately 1 gigawatt. Germany committed to creating favorable conditions to facilitate these projects. The broader initiative also promotes collaboration in energy and industrial technology sectors. Officials described these measures as part of a wider array of agreements reached during the state visit, which brought together representatives from government and industry from both countries.
In total, companies from the UAE and Germany signed 29 agreements and memoranda valued at more than €9.356 billion. Furthermore, the two governments agreed to form a German-UAE Investment Council, designed to serve as a platform for public institutions and private enterprises engaged in bilateral investments. A new Strategic Dialogue will also be established to address issues such as trade, investment, technology, energy, transport, education, security, and other key areas. These mechanisms are integral parts of the comprehensive set of announcements made during the visit.
Data centres central to the investment initiative
This €40 billion plan supplements existing UAE-related investments in Germany. Notably, XRG has invested approximately €15 billion in the German chemicals company Covestro. The governments also identified commercial activities involving Covestro, RWE, ADNOC, and Masdar as integral to the broader bilateral partnership. These ongoing projects coexist with the newly announced investment scheme rather than replacing it. The latest commitments span multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between the two nations has also seen growth. In 2025, UAE-Germany non-oil trade reached $15.5 billion, representing an increase of over 14% compared to the previous year. Cumulative investment flows from both sides surpassed $10 billion between 2021 and 2025. Additionally, the UAE and Germany supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. The governments indicated that these talks should not only enhance bilateral trade relations but also create a broader framework for commercial cooperation.
Beyond trade and investment: new bilateral agreements
In addition to economic ties, the state visit resulted in agreements across several other sectors. Both parties committed to collaborating on energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also reached consensus on exploring a framework for defence and security cooperation. The Strategic Dialogue will serve as a formal channel to facilitate ongoing work in these fields. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany, marking a significant milestone in the bilateral relationship.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The recent announcements introduce new investment and commercial initiatives into that framework. The €40 billion investment package remains the core economic commitment from the visit, with €10 billion allocated for Bavaria and plans for approximately 1 gigawatt of data-centre capacity. The 29 business agreements worth more than €9.356 billion further strengthen the economic ties across multiple sectors, reflecting the growing scope of bilateral relations.