BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed plans to channel €40 billion into Germany, targeting key sectors such as industry, advanced technology, artificial intelligence, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany from September 9 to 11. German Chancellor Friedrich Merz joined the UAE leader in endorsing the investment initiative. Of this total, €10 billion is specifically aimed at boosting investments in Bavaria.
This significant funding package emphasizes substantial investment in Germany’s digital infrastructure. A joint declaration from both governments outlined plans to develop new data centres with a combined capacity of approximately 1 gigawatt. Germany has committed to creating favorable conditions to facilitate these projects. The package forms part of a broader set of economic agreements unveiled during the state visit, with both nations also agreeing to collaborate more closely in technology, energy, trade, investment, and other fields covered by their bilateral relationship.
During the visit, 29 business agreements and memoranda of understanding were signed between UAE and German companies. These agreements are collectively valued at over €9.356 billion, according to the joint declaration. Both governments also agreed to establish a German-UAE Investment Council, which will serve as a platform to promote investment and foster engagement between government agencies and private sector entities. Additionally, the UAE and Germany launched a Strategic Dialogue focusing on economic, technological, security, energy, transport, environmental, cultural, and educational cooperation.
UAE investment plan emphasizes industry and digital infrastructure
The €40 billion investment commitment builds on previous major UAE projects in Germany. According to the joint declaration, XRG has invested around €15 billion in Covestro. The two nations also identified additional corporate investment and partnership opportunities involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from but complement the new investment package, which itself totals €40 billion. The governments highlighted collaboration primarily in industrial development, digital infrastructure, and energy sectors.
In recent years, economic ties between the UAE and Germany have strengthened. Non-oil trade between the two countries reached $15.5 billion in 2025, representing an increase of over 14% compared to 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both governments also reaffirmed their support for negotiations on a comprehensive trade agreement between the UAE and the European Union. Germany and the UAE expressed their backing for a commercially ambitious agreement that would encompass bilateral trade relations.
Expanding UAE-Germany economic collaborations through bilateral agreements
The agreements announced during the visit extend beyond just investment and trade. The two nations signed protocols related to energy cooperation, data centres, air transport, security, legal aid, environmental initiatives, and information systems. They also agreed to explore a framework for defence and security collaboration. A separate agreement on air transport addressed access rights for UAE airlines at Berlin Airport. These measures were part of the broader Strategic Dialogue established to coordinate efforts across various sectors.
This visit marked the first time a president of the United Arab Emirates paid an official state visit to Germany. It also built upon a bilateral strategic partnership formed in 2004. Sheikh Mohamed met with German leaders in Berlin as both sides announced the investment plan, business deals, and new cooperation frameworks. The €40 billion investment remains the headline figure, with €10 billion allocated for Bavaria and digital infrastructure projects with about 1 gigawatt of data-centre capacity.