BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has disclosed plans to allocate €40 billion for investment projects throughout Germany, targeting a range of strategic sectors. This financial commitment encompasses industries such as manufacturing, 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 Sept. 9 to 11. German Chancellor Friedrich Merz joined the UAE president in endorsing this substantial investment plan. Of the total sum, €10 billion is specifically designated for investments within Bavaria.
A significant component of this package involves substantial expenditure on enhancing Germany’s digital infrastructure. Both governments issued a joint declaration detailing plans to develop new data centres with a combined capacity of approximately 1 gigawatt. Germany committed to creating favorable conditions to facilitate these projects. This investment initiative forms a segment of a broader set of economic agreements announced during the presidential visit. Additionally, the two nations outlined their cooperation in fields such as technology, energy, trade, and investment, reinforcing their bilateral partnership.
During the state visit, 29 business agreements and memoranda were signed between UAE and German companies, with a combined value surpassing €9.356 billion, according to the joint declaration. Both countries also agreed to establish a German-UAE Investment Council, which will serve as a platform for engaging with government agencies and private sector entities. Furthermore, they launched a Strategic Dialogue covering economic, technological, security, energy, transport, environmental, cultural, and educational cooperation efforts.
UAE’s €40 Billion Investment Focuses on Industry Growth and Digital Modernization
This €40 billion pledge builds on previous major investments by the UAE in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two nations also identified additional corporate investment opportunities and partnerships involving companies such as Covestro, RWE, ADNOC, and Masdar. These initiatives are complementary to the newly announced investment plan but are not included in the €40 billion total. Both governments emphasized collaborations in industrial development, digital infrastructure, and energy as primary areas of focus.
Over recent years, economic interactions between the UAE and Germany have increased significantly. In 2025, non-oil trade between the two countries reached $15.5 billion, reflecting a growth of over 14% compared to 2024. Cumulative investment flows from 2021 to 2025 exceeded $10 billion. Both governments expressed their support for negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, advocating for a deal that enhances bilateral trade relations and economic cooperation.
New Agreements Deepen UAE-Germany Economic Collaboration
The agreements announced during the visit extend beyond mere investment and trade. Both nations signed arrangements to foster cooperation in energy, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. They also agreed to explore a framework for defence and security collaboration. A separate air transport agreement was also reached, addressing access rights for UAE national carriers at Berlin Airport. These measures accompany the broader Strategic Dialogue initiative, which was established to coordinate cross-sectoral cooperation efforts between the two countries.
This visit marked the first time a president of the United Arab Emirates has made an official state visit to Germany. It further strengthened the bilateral strategic partnership that has been in place since 2004. During the visit, 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 commitment remains the most prominent headline of the economic agreements, with €10 billion allocated specifically for Bavaria and digital infrastructure initiatives supporting approximately 1 gigawatt of data-centre capacity.