BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed plans to allocate €40 billion into Germany, targeting multiple strategic sectors. This financial package encompasses areas such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from September 9 to 11. German Chancellor Friedrich Merz participated in welcoming the investment plan alongside the UAE president. Out of the total, €10 billion will be dedicated to investments specifically in Bavaria.
A significant part of the package involves substantial expenditure on digital infrastructure enhancement within Germany. A joint declaration from both governments detailed plans to develop new data centres with a combined capacity of approximately 1 gigawatt. Germany committed to creating favorable conditions for their deployment. This initiative is one component of a broader array of economic agreements announced during the state visit. Both nations also committed to cooperate in technology, energy, trade, investment, and additional areas covered by their bilateral partnership.
The state visit resulted in 29 business agreements and memoranda of understanding between UAE and German companies, with a combined value surpassing €9.356 billion, as stated in the joint declaration. Both countries also agreed to establish a German-UAE Investment Council, which will serve as a platform for investment activities and engagement between government entities and private corporations. Additionally, the UAE and Germany launched a Strategic Dialogue focusing on economic, technological, security, energy, transport, environmental, cultural, and educational cooperation.
UAE’s €40 Billion Investment Focuses on Industry and Digital Growth
This €40 billion pledge follows other significant UAE investments in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two countries also identified additional corporate investment and partnership plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives operate alongside the newly announced investment package and are not included in the €40 billion total. Both governments emphasized their focus on industrial development, digital infrastructure, and energy as key areas of collaboration.
In recent years, economic relations between the UAE and Germany have grown notably. Non-oil trade between the two nations reached $15.5 billion in 2025, reflecting over a 14% increase from 2024. Investment flows between them surpassed $10 billion from 2021 to 2025. Both governments also reaffirmed their support for negotiations aimed at establishing a comprehensive trade agreement between the UAE and European Union. They expressed backing for a commercially ambitious treaty to enhance bilateral trade relations.
Enhancing UAE-Germany Economic Relations through New Agreements
The agreements signed during the visit extend beyond investments and trade. They include arrangements for energy cooperation, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. Both sides also agreed to explore a framework for defence and security collaboration. A separate agreement on air transport addressed access rights for UAE national carriers at Berlin Airport. These measures were part of the broader Strategic Dialogue established to coordinate cooperation across multiple sectors.
This visit marked the first state visit to Germany by a president of the United Arab Emirates. It built upon the bilateral strategic partnership initiated in 2004. Sheikh Mohamed met German leaders in Berlin as both parties announced the investment plan, business agreements, and new cooperation mechanisms. The €40 billion investment remains the central highlight, with €10 billion allocated to Bavaria and plans for digital infrastructure including about 1 gigawatt of data-centre capacity.