BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to allocate €40 billion across various key industries in Germany. This financial package encompasses sectors such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. German Chancellor Friedrich Merz participated in discussions related to these new economic commitments. Notably, €10 billion of this investment will be dedicated to Bavaria, representing a significant portion of the overall plan.
A major focus of the announced investments is digital infrastructure. 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 key areas covered by the package. Germany committed to supporting the necessary conditions for the data-centre projects. These developments broaden the scope of economic agreements presented during the visit, adding new commitments in technology, energy, and industrial growth.
Another important element of the visit was the signing of numerous business agreements. Companies from both countries entered into 29 deals 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 sector entities involved in bilateral investments. They also launched a Strategic Dialogue to facilitate cooperation in areas such as trade, energy, investment, technology, transport, education, and security.
Digital Investments Broaden Economic Cooperation
Following previous substantial UAE-related investments in Germany, the €40 billion package marks another significant step. XRG has invested roughly €15 billion in Covestro, a prominent German chemicals firm. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the state visit. The wider economic strategy emphasizes industrial advancement, renewable energy, digital infrastructure, technology, and strengthened investment ties between corporate and public sectors of both nations.
Trade relations have also seen notable growth recently. Non-oil trade between the UAE and Germany reached $15.5 billion in 2025, representing an increase of over 14% compared to 2024. Cumulative investments from 2021 through 2025 surpassed $10 billion. The UAE and Germany also backed negotiations for a comprehensive trade agreement between the UAE and the European Union. Both governments stated that negotiations should focus on bilateral trade and enhance the framework governing their commercial relations.
Additional Agreements Strengthen UAE-Germany Ties
Beyond the core investment package, the visit resulted in agreements covering energy, data centres, transportation, legal cooperation, environmental initiatives, security, and information systems. They also agreed to explore a framework for defense and security collaboration. The Strategic Dialogue will serve as a formal platform for ongoing work in these sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates and included meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their collaboration. The latest agreements introduce new investment and commercial initiatives within that existing framework. The €40 billion package remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at over €9.356 billion add an additional dimension to the strengthened economic relationship between the two nations.