BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates plans to invest €40 billion in Germany across industry, technology, energy and digital infrastructure. The package was announced during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz joined talks connected to the new economic commitments. The plan includes €10 billion for investments in Bavaria. It also covers artificial intelligence, advanced technology and projects tied to Germany’s industrial base.
The investment program includes a major digital infrastructure component. The UAE and Germany outlined plans for advanced data centres with about 1 gigawatt of combined capacity. Germany said it would support conditions needed to implement those projects. The broader package also includes cooperation in energy and industrial technology. Officials presented the measures as part of a wider group of agreements reached during the state visit, which brought together government representatives and companies from both countries.
Companies from the UAE and Germany signed 29 agreements and memoranda valued at more than €9.356 billion. The two governments also agreed to establish a German-UAE Investment Council. The council will provide a platform for public institutions and private companies involved in bilateral investment. A new Strategic Dialogue will cover trade, investment, technology, energy, transport, education, security and other areas. Both countries included these mechanisms in the broader set of announcements made during the visit.
Data centres form key part of investment package
The €40 billion plan adds to existing UAE-linked investment in Germany. XRG has invested about €15 billion in German chemicals group Covestro. The governments also identified commercial activity involving Covestro, RWE, ADNOC and Masdar as part of the wider bilateral relationship. These projects stand alongside the newly announced investment package rather than replacing it. The latest commitments cover several sectors, including industry, artificial intelligence, digital infrastructure, advanced technology and energy.
Trade between the two countries has also expanded. UAE-Germany non-oil trade reached $15.5 billion in 2025, rising more than 14% from the previous year. Cumulative investment flows exceeded $10 billion between 2021 and 2025. The UAE and Germany also backed negotiations for a comprehensive trade agreement between the UAE and the European Union. The governments said the talks should cover bilateral trade relations and provide a broader framework for commercial activity.
Bilateral deals extend beyond trade and investment
The state visit produced agreements in several additional areas. The two sides announced cooperation on energy, data centres, air transport, legal assistance, environmental matters, security and information systems. They also agreed to explore a framework for defence and security cooperation. The Strategic Dialogue will serve as a formal channel for work across those sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates, adding a new diplomatic milestone to the bilateral relationship.
Germany and the UAE established their strategic partnership in 2004. The latest announcements add a new set of investment and commercial measures to that framework. The €40 billion investment package remains the central economic commitment from the visit. It includes €10 billion for Bavaria and plans for about 1 gigawatt of data-centre capacity. The 29 business agreements worth more than €9.356 billion add further commercial commitments across several sectors linked to the growing economic relationship.