BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has announced plans to channel €40 billion into various key sectors within Germany. This substantial fund aims to support industries such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The revelation was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany. German Chancellor Friedrich Merz participated in discussions about the new economic initiatives. The plan allocates €10 billion specifically for investments in Bavaria, providing the region with a notable share of the overall funding.
A key focus of the investment program is digital infrastructure. The UAE and Germany have outlined plans for state-of-the-art data centres with a combined capacity of about 1 gigawatt. Artificial intelligence and industrial technology are also central areas covered by the package, with Germany committing to support the conditions necessary for the development of these data-centre projects. These announcements broaden the scope of economic agreements announced during the visit, adding new commitments related to technology, energy, and industrial growth.
Business collaborations constituted a significant aspect of the visit, with companies from both nations signing 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council to foster investment activities between public institutions and private enterprises. Both nations also launched a Strategic Dialogue focusing on trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Digital Growth Drives Broader Economic Goals
The €40 billion investment plan adds to existing large-scale UAE-funded projects in Germany. XRG has invested approximately €15 billion in Covestro, a prominent German chemicals manufacturer. The two governments also emphasized ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the newly announced package and other agreements signed during the state visit. The overall economic agenda emphasizes industrial development, renewable energy, digital infrastructure, technological innovation, and strengthening investment links between corporations and government bodies in both nations.
Recent years have seen increased trade between the UAE and Germany, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% compared to 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both countries supported negotiations toward a comprehensive trade agreement between the UAE and the European Union, with discussions aimed at boosting bilateral trade and reinforcing the framework for commercial relations.
Expanded UAE-Germany Collaboration through New Agreements
Beyond the core investment package, the visit resulted in agreements spanning energy, data centres, transport, legal aid, environmental initiatives, security, and information systems. The two sides also agreed to explore a framework for defence and security cooperation. The Strategic Dialogue will serve as a formal platform for ongoing efforts 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 officials.
Germany and the UAE established their strategic partnership in 2004. The latest agreements build upon this existing relationship, introducing new investment and trade measures. The €40 billion commitment remains the most significant economic pledge announced during the visit, with €10 billion allocated to Bavaria and about 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 nations.