BERLIN, GERMANY / RankWire.AI / – A €40 billion investment plan involving the United Arab Emirates is set to significantly boost Germany’s industry, technology, energy, and digital infrastructure sectors. This substantial commitment was revealed during President Sheikh Mohamed bin Zayed Al Nahyan’s official state visit to Germany. German Chancellor Friedrich Merz participated in discussions linked to these new economic initiatives. The strategy allocates €10 billion specifically for investments in Bavaria and also emphasizes advancements in artificial intelligence, cutting-edge technology, and projects connected to Germany’s industrial sector.
A core feature of this investment plan is its emphasis on digital infrastructure development. Both nations outlined plans to establish advanced data centres with an aggregate capacity of about 1 gigawatt. Germany committed to providing the conditions necessary for executing these projects. The broader package also fosters cooperation in energy and industrial technology sectors. These measures are part of a wider set of agreements finalized during the state visit, which gathered government officials and corporate representatives from both countries.
A total of 29 agreements and memoranda of understanding worth over €9.356 billion were signed by companies from the UAE and Germany. Additionally, the two governments agreed to create a German-UAE Investment Council to serve as a platform for public institutions and private enterprises involved in bilateral investments. Furthermore, a new Strategic Dialogue will be established to facilitate collaboration in trade, investment, technology, energy, transport, education, security, and other fields. These mechanisms are integral to the broader announcement package resulting from the official visit.
Data centre investments are central to the funding plan
The €40 billion initiative supplements existing UAE-related investments in Germany. Notably, XRG has allocated approximately €15 billion to German chemicals firm Covestro. The governments also identified ongoing commercial activities involving Covestro, RWE, ADNOC, and Masdar as part of the extensive bilateral economic relationship. These projects coexist with the newly announced investment package rather than replacing it. The latest commitments span various sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade relations between Germany and the UAE have also experienced growth. In 2025, non-oil trade between the two countries reached $15.5 billion, reflecting an increase of over 14% from the previous year. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both nations also supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. The governments emphasized that these talks should encompass bilateral trade relations and create a broader framework for commercial cooperation.
Beyond trade and investment: new agreements and cooperation
The state visit resulted in agreements across several additional domains. The two countries committed to joint efforts in energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also agreed to explore a framework for defense and security collaboration. The Strategic Dialogue will act as a formal channel for ongoing cooperation across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates, marking a significant diplomatic milestone in the bilateral relationship.
Germany and the UAE formalized their strategic partnership in 2004. The latest set of announcements expands this framework with new investment and commercial initiatives. The €40 billion investment package remains the primary economic pledge from the visit, including €10 billion dedicated to Bavaria and plans for around 1 gigawatt of data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further deepen economic ties through commitments across various sectors connected to the expanding bilateral relationship.