BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates announced plans to channel €40 billion into various key industries within the country. This substantial investment package includes allocations for industry, artificial intelligence, advanced technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions concerning these new economic commitments, which notably allocate €10 billion for projects in Bavaria, a significant component of the overall plan.
A major focus of the investment initiative is digital infrastructure, with plans for state-of-the-art data centres totaling around 1 gigawatt of combined capacity. Both governments have also pinpointed artificial intelligence and industrial technology as key areas for development within the package. Germany expressed its support for the conditions necessary to facilitate the data-centre projects. These announcements broaden the scope of economic agreements made during the visit, adding new commitments in the fields of technology, energy, and industrial growth.
Another significant aspect of the visit involved business agreements. A total of 29 deals and memoranda worth over €9.356 billion were signed between companies from the UAE and Germany. Additionally, the two nations agreed to establish a German-UAE Investment Council, which will serve to connect public institutions with private sector entities involved in bilateral investments. The countries also launched a Strategic Dialogue focused on trade, energy, investment, technology, transport, education, security, and other areas of mutual cooperation.
Expansion of Digital Investments Enhances Broader Economic Strategy
The €40 billion investment package builds upon previous large-scale UAE-related investments in Germany, including XRG’s approximately €15 billion investment in Covestro, a leading German chemicals firm. The two governments highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar, alongside the newly announced package and other agreements signed during the state visit. The comprehensive economic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technological advancement, and increased investment collaborations between firms and public entities from both nations.
Trade relations between the UAE and Germany have experienced growth in recent years, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% compared to 2024. Cumulative investment flows from 2021 through 2025 surpassed $10 billion. Both countries also supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, with the goal of addressing bilateral trade issues and reinforcing the framework for commercial relations.
Additional Agreements Broaden UAE-Germany Collaborative Efforts
Beyond the core investment commitments, the visit resulted in agreements covering energy, data centres, transport, legal assistance, environmental cooperation, security, and information systems. Both nations also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal channel to sustain progress across these sectors. Sheikh Mohamed’s visit 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 cooperation, and the latest agreements add new investment and commercial initiatives to that existing framework. The €40 billion package stands out as the largest economic commitment announced during the visit, including €10 billion for Bavaria and roughly 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at over €9.356 billion further deepen the economic ties between the two countries, enriching their collaborative landscape.