BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates intends to channel €40 billion into Germany, targeting various key industries. The funding will support sectors such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. This announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz participated in discussions about these new economic initiatives. A notable part of the plan allocates €10 billion for investments in Bavaria, giving the region a significant role in the overall scheme.
Digital infrastructure is a key focus of the announced funding. The UAE and Germany have detailed plans for advanced data centres with about 1 gigawatt of combined capacity. Both governments also emphasized artificial intelligence and industrial technology as priority areas. Germany committed to supporting the conditions necessary for the data-centre projects to succeed. These announcements broaden the scope of economic agreements announced during the visit and introduce new commitments related to technology, energy, and industrial growth.
Business agreements formed a major part of the visit. Companies from both nations signed 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council. This council will link public institutions with private firms involved in bilateral investments. Both countries also launched a Strategic Dialogue covering trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Digital investments push forward economic collaboration
The €40 billion plan builds on existing UAE-related investments in Germany. XRG has invested approximately €15 billion in Covestro, a leading German chemicals firm. The two governments also highlighted business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements made during the state visit. The wider economic agenda covers industrial development, clean energy, digital infrastructure, technology, and corporate and public sector investments in both countries.
Trade between the UAE and Germany has seen recent growth. Non-oil trade reached $15.5 billion in 2025, rising over 14% from 2024. Investment flows between them surpassed $10 billion from 2021 to 2025. Both nations supported negotiations for a comprehensive trade agreement between the UAE and the European Union. They stated that talks should focus on bilateral trade and strengthening the framework for commercial relations.
Additional pacts enhance UAE-Germany collaboration
Beyond the core investment plan, the visit produced several other agreements. The two sides discussed energy, data centres, transport, legal aid, environmental initiatives, security, and information systems. They also agreed to explore a framework for defence and security cooperation. The Strategic Dialogue will serve as a formal platform for ongoing collaboration across these sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates, including meetings with senior German leaders.
Germany and the UAE established their strategic partnership in 2004. The recent agreements add new investment and commercial initiatives to that foundation. The €40 billion commitment remains the largest economic pledge announced during the visit. It includes €10 billion for Bavaria and about 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at over €9.356 billion deepen the economic relationship between the two nations.