BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed plans to inject €40 billion into Germany across various key sectors. This substantial financial package encompasses areas such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from September 9 to 11. German Chancellor Friedrich Merz joined the UAE president in welcoming this investment initiative. Of the total, €10 billion will be directed toward projects in Bavaria.
A significant portion of the investment plan will focus on enhancing Germany’s digital infrastructure. A joint declaration from both governments outlined their plans for establishing new data centres with a combined capacity of around 1 gigawatt. Germany has committed to creating favorable conditions to support these developments. This initiative is part of a broader set of economic agreements announced during the state visit. Both nations also emphasized cooperation in technology, energy, trade, investment, and other areas of their bilateral relationship.
During the visit, 29 business agreements and memoranda of understanding were signed between UAE and German companies. The total value of these accords exceeds €9.356 billion, as stated in the joint declaration. The two countries agreed to create a German-UAE Investment Council, which will serve as a platform for investment and collaboration between government agencies and private enterprises. Additionally, they launched a Strategic Dialogue that will cover sectors such as economic development, technology, security, energy, transport, environment, culture, and education cooperation.
UAE’s €40 Billion Investment Focuses on Industry and Digital Infrastructure
This €40 billion pledge follows other significant UAE investments in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two nations also outlined additional plans for corporate investments and partnerships involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from the newly announced investment package and are not included in the total €40 billion. The main focus areas highlighted by the governments include industrial development, digital infrastructure, and energy sectors.
In recent years, economic ties between the UAE and Germany have grown considerably. Non-oil trade between the two nations reached $15.5 billion in 2025, which is a rise of more than 14% compared to 2024. Investment flows between them have surpassed $10 billion from 2021 to 2025. Both governments also reaffirmed their support for negotiations toward a comprehensive trade agreement between the UAE and European Union. They expressed backing for a trade deal that is commercially ambitious and covers bilateral trade relations.
Expanded UAE-Germany Economic Relations through New Agreements
The agreements announced during the visit go beyond just investment and trade. Both countries signed accords related to energy cooperation, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. They also agreed to explore a framework for defense and security collaboration. A separate arrangement concerning air transport addressed access rights for UAE national carriers at Berlin Airport. These measures complemented the broader Strategic Dialogue created to coordinate cooperation across multiple sectors.
This visit marked the first time a president of the United Arab Emirates has made a state visit to Germany. It built upon the bilateral strategic partnership established in 2004. During the visit, Sheikh Mohamed met German leaders in Berlin, with both sides announcing the investment package, new business agreements, and cooperation mechanisms. The €40 billion investment remains the most prominent announcement, with €10 billion allocated to Bavaria and digital infrastructure plans that include about 1 gigawatt of data-centre capacity.