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 across key sectors within the country. This investment package spans industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions about these new economic commitments. Notably, €10 billion of this fund is designated for projects in Bavaria, making it a prominent part of the overall plan.
In Berlin, digital infrastructure emerged as a core element of the announced investment plan. The UAE and Germany presented plans for advanced data centres with a total capacity of about 1 gigawatt. Additionally, both nations identified artificial intelligence and industrial technology as critical areas covered by the package. Germany committed to supporting the necessary conditions for the development of these data-centre initiatives. These developments broaden the scope of economic agreements made during the visit, emphasizing technology, energy, and industrial progress.
Furthermore, business collaborations formed a significant aspect of the visit. Companies from both nations signed 29 agreements and memoranda valued at over €9.356 billion. An agreement to establish a German-UAE Investment Council was also reached, aiming to connect public agencies and private enterprises involved in bilateral investments. Additionally, both countries launched a Strategic Dialogue focused on trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Expansion of Digital Investments Reinforces Economic Ties
Following other significant UAE-related investments in Germany, the €40 billion plan continues to build on existing economic ties. XRG has invested approximately €15 billion in Covestro, a prominent German chemicals firm. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements signed during the state visit. The broader economic strategy emphasizes industrial growth, renewable energy, digital infrastructure, technological collaboration, and investment connectivity between corporate and public sectors in both nations.
Trade between the UAE and Germany has experienced steady growth, with non-oil trade reaching $15.5 billion in 2025—an increase of more than 14% from 2024. Cumulative investment flows from 2021 to 2025 exceeded $10 billion. The two countries also backed negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and strengthen the framework for commercial relations.
Additional Agreements Broaden UAE-Germany Partnership
Beyond the core investment announcement, the visit facilitated agreements covering energy, data centres, transport, legal assistance, environmental cooperation, security, and information systems. Discussions also included the potential for a framework dedicated to defence and security cooperation. The Strategic Dialogue established during the visit will serve as a formal channel to continue collaboration across these sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates and involved 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 initiatives within this framework. The €40 billion investment package remains the largest economic commitment announced during the visit, featuring €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business agreements, valued at over €9.356 billion, further deepen the economic relationship between the two nations.