BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany, the United Arab Emirates revealed plans to channel €40 billion into various key industries within the country. This financial package encompasses sectors such as industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. The announcement was made amidst discussions attended by German Chancellor Friedrich Merz, who participated in negotiations concerning these new economic commitments. A significant portion, €10 billion, is designated for investments in Bavaria, granting the region a substantial share of the overall initiative.
A core aspect of the investment plan centers on digital infrastructure. Both the UAE and Germany unveiled plans to develop advanced data centres with a total capacity of approximately 1 gigawatt. The governments also identified artificial intelligence and industrial technologies as focal points within the package. Germany committed to supporting the necessary conditions for the success of these data-centre projects. These developments expanded the scope of economic agreements introduced during the visit, adding new commitments across the fields of technology, energy, and industrial growth.
Another major element of the visit involved business agreements. A total of 29 deals and memoranda of understanding were signed between companies from both nations, amounting to over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, which aims to connect public institutions and private sector entities engaged in bilateral investments. Both nations also launched a Strategic Dialogue that will address trade, energy, investment, technology, transport, education, security, and other areas of mutual cooperation.
Digital Investments Broaden Economic Strategy
The €40 billion investment initiative follows previous significant UAE-related investments in Germany. XRG has contributed roughly €15 billion to Covestro, a prominent German chemicals enterprise. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced financial package and other agreements signed during the state visit. The overall economic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technological innovation, and strengthened investment relations between companies and public institutions of both countries.
Trade relations between the UAE and Germany have seen notable growth recently. Non-oil trade reached $15.5 billion in 2025, representing an increase of more than 14% compared to 2024. Cumulative investment flows from 2021 to 2025 surpassed $10 billion. Both countries also backed negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, with both governments emphasizing the importance of addressing bilateral trade and enhancing the framework governing their economic relationship.
Enhanced Cooperation Through New Agreements
Beyond the core investment commitments, the visit resulted in agreements covering energy, data centres, transportation, legal support, environmental initiatives, security, and information systems. The two nations also agreed to develop a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal mechanism to maintain ongoing work across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates and included high-level meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The latest agreements introduce new investment and commercial measures within that existing framework. The €40 billion package remains the largest economic commitment announced during the visit, with €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements worth more than €9.356 billion reinforce and deepen the economic ties between the two nations.