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    Home»Business»UAE and Germany Strengthen Strategic Ties with €40 Billion Investment Initiative
    Business

    UAE and Germany Strengthen Strategic Ties with €40 Billion Investment Initiative

    September 11, 2026
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    BERLIN, GERMANY / RankWire.AI / – During a state visit to Berlin, the United Arab Emirates and Germany inaugurated a Strategic Dialogue and reached an agreement to create a bilateral Investment Council. UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz witnessed the formal announcement of 12 government-level accords, memoranda, and declarations. These agreements encompass sectors such as investment, energy, technology, aviation, security, legal cooperation, environmental issues, data systems, and culture. They further extend the framework of the UAE-Germany Comprehensive Strategic Partnership, established in 2004.

    UAE and Germany deepen ties with €40 billion investment
    UAE and Germany expand cooperation across investment, trade, energy and technology.

    The newly formed Strategic Dialogue aims to facilitate collaboration across areas including regional security, defense, trade, investment, energy, climate change, digitalization, transportation, education, and emerging technologies. Both nations also signed a declaration of intent to set up the German-UAE Investment Council, which will serve as a platform for public and private sector engagement on investment initiatives. Additionally, officials revived the Joint Economic Committee, creating another formal channel for bilateral economic and commercial discussions.

    Among the government agreements are arrangements to enhance air transport connectivity for UAE national carriers at Berlin Airport, along with cooperation on passenger procedures, crime prevention, and mutual legal assistance in criminal cases. Separate documents specify cooperation in defense and security, environmental policies, data hosting, and information systems. The two countries also committed to further expanding energy collaboration and signed a memorandum on cultural cooperation.

    Economic implications of the investment package become evident

    The visit resulted in a UAE investment package worth 40 billion euros directed toward Germany. This includes investments in advanced digital infrastructure and plans for establishing new data centers with approximately 1 gigawatt of capacity. Furthermore, UAE and German firms signed 29 commercial agreements and memoranda valued at over 9.356 billion euros, complementing the government agreements announced and broadening the economic scope of the bilateral discussions.

    Trade and investment figures illustrate the depth of current economic connections. Non-oil trade between UAE and Germany reached $15.5 billion in 2025, reflecting an increase of more than 14% compared to the previous year. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both governments also highlighted ongoing negotiations for a comprehensive trade agreement between the UAE and the European Union.

    Cooperation in energy, technology, and transportation deepens

    The investment agenda includes additional corporate projects involving Covestro, RWE, ADNOC, and Masdar. Existing UAE-related investments in Germany include XRG’s approximately 15 billion euro stake in Covestro. The two governments also identified liquefied natural gas, renewable energy, and hydrogen as priority sectors for continued cooperation. Their agreements further cover digital infrastructure, artificial intelligence, and other advanced technologies within the broader bilateral framework.

    Spanning from September 9 to September 11, the visit marks the first state visit to Germany by a UAE president. Discussions in Berlin focused on economic cooperation, technology, energy, culture, education, and regional issues. The establishment of the Strategic Dialogue, Investment Council, and related agreements provides new formal channels for managing bilateral cooperation, with the measures announced encompassing government policy, investment, private-sector agreements, transport access, and major infrastructure projects.

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