BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates revealed plans to allocate €40 billion into various key industries within the country. The comprehensive package encompasses sectors such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions centered around these new economic initiatives, which include €10 billion earmarked for investments in Bavaria, granting the region a prominent share of the overall strategy.
A significant focus of the announced investment is digital infrastructure. The UAE and Germany outlined plans to develop advanced data centres with a combined capacity of approximately 1 gigawatt. Artificial intelligence and industrial technology also feature prominently within the package’s scope. Germany committed to supporting the prerequisites necessary for the data-centre projects to advance. These announcements expanded the scope of economic agreements announced during the visit, introducing fresh commitments across the fields of technology, energy, and industrial growth.
Another major component of the visit involved business deals. Companies from both nations signed a total of 29 agreements and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which will facilitate connections between public agencies and private enterprises involved in bilateral investment initiatives. Furthermore, both nations launched a Strategic Dialogue covering areas such as trade, energy, investment, technology, transport, education, security, and other collaborative sectors.
Digital Sector Investment Bolsters Broader Economic Goals
This €40 billion investment strategy builds on previous significant UAE-related ventures in Germany. XRG has already invested roughly €15 billion into Covestro, a leading German chemicals firm. The two governments highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These efforts sit alongside the newly announced package and other agreements signed during the state visit. The overarching economic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technological innovation, and increased corporate and institutional investments between the two countries.
Trade relations have also experienced growth in recent years, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% compared to 2024. Total investment flows between the UAE and Germany from 2021 to 2025 surpassed $10 billion. Both nations supported negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. The governments expressed hopes that these negotiations would enhance bilateral trade and reinforce the framework for economic cooperation.
Additional Agreements Enhance UAE-Germany Partnership
Beyond the core investment plan, the visit facilitated agreements covering energy, data centres, transportation, legal aid, environmental cooperation, security, and information systems. Both sides also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal mechanism to continue cooperation across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by an Emirati president and included meetings with senior German officials.
Germany and the UAE established their strategic partnership in 2004. The recent agreements introduce additional investment and commercial initiatives to that existing framework. The €40 billion investment plan remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of data-centre capacity planned. The 29 business agreements valued at over €9.356 billion further deepen the economic ties between the two nations.