BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has announced plans to allocate €40 billion in Germany spanning several key industries. This financial package encompasses sectors such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The revelation was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions regarding the new economic initiatives. Notably, €10 billion of the total will be invested in Bavaria, marking a significant share of the overall plan for the region.
A key element of the announced investment is digital infrastructure. The UAE and Germany outlined plans to develop advanced data centres with a combined capacity of approximately 1 gigawatt. Both governments also identified artificial intelligence and industrial technology as priority areas covered by this initiative. Germany committed to supporting the necessary conditions for these data-centre projects. These announcements broaden the scope of economic agreements announced during the visit, adding new commitments in technology, energy, and industrial development sectors.
Business agreements played a significant role in the visit’s agenda. Companies from both nations signed 29 accords and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council to facilitate connections between public institutions and private corporations involved in bilateral investments. Both countries also launched a Strategic Dialogue focusing on trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Expanding the economic agenda through digital investment
This €40 billion investment package builds on other substantial UAE-related investments in Germany. XRG has invested roughly €15 billion in Covestro, a prominent German chemical enterprise. Both 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 broader economic strategy emphasizes industrial growth, clean energy initiatives, digital infrastructure, technological advancements, and strengthening investment and corporate ties between the two nations.
Trade relations between the UAE and Germany have seen recent growth, with non-oil trade reaching $15.5 billion in 2025, a rise of over 14% compared to 2024. Cumulative investment flows from both countries surpassed $10 billion from 2021 to 2025. Furthermore, the UAE and Germany backed negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and reinforce the framework governing their commercial relations.
New agreements broaden UAE-Germany collaboration
Beyond the core investment commitments, the visit resulted in agreements covering energy, data centres, transportation, legal assistance, environmental cooperation, security, and information systems. Both nations also agreed to explore a framework for defense and security collaboration. The Strategic Dialogue will serve as an official channel to advance cooperation across 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 additional investment and commercial initiatives within that existing framework. The €40 billion package remains the most substantial economic commitment announced during the visit. It allocates €10 billion specifically for Bavaria and plans for approximately 1 gigawatt of data-centre capacity. The 29 business agreements valued at over €9.356 billion add further depth to the growing economic ties between the two countries.