BERLIN, GERMANY / RankWire.AI / – Announced during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates has revealed plans to allocate €40 billion into various sectors including industry, technology, energy, and digital infrastructure. The €10 billion of this investment will be directed toward projects in Bavaria, positioning the southern German state as a key component of the overall initiative. German Chancellor Friedrich Merz participated alongside the UAE leader as both governments outlined an array of economic agreements to expand their cooperation.
A major element of the UAE’s investment strategy centers on digital infrastructure, with plans for cutting-edge data centres boasting approximately 1 gigawatt of combined capacity in Germany. This joint declaration also addressed advancements in artificial intelligence, industrial growth, and energy projects. Germany committed to facilitating the conditions necessary for executing these planned data-centre investments. These measures further strengthen an expanding economic partnership between the UAE and Germany, spanning technology, manufacturing, energy, and other commercial sectors.
During the visit, representatives from both nations signed 29 agreements and memoranda of understanding valued at over €9.356 billion. An additional outcome was the agreement to establish a German-UAE Investment Council, designed to connect governmental agencies with private-sector firms and foster investment initiatives between the two countries. A new Strategic Dialogue was also launched, covering areas such as trade, technology, investment, energy, transport, education, security, and other facets of bilateral cooperation.
Digital Infrastructure as a Cornerstone of the Investment Plan
The €40 billion commitment builds on existing UAE-related investments in Germany, including XRG’s approximately €15 billion investment in chemicals group Covestro, according to the joint government declaration. Officials also highlighted collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic framework. These projects sit alongside the newly announced plan, with focus areas such as industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy identified as central to the initiative.
Trade between the UAE and Germany has demonstrated consistent growth, with non-oil trade reaching $15.5 billion in 2025—an increase of over 14% compared to the previous year. From 2021 to 2025, bilateral investment flows surpassed $10 billion. Both countries also expressed support for ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, emphasizing the importance of these talks in bolstering bilateral trade and broader economic relations.
Expanding Economic Ties Between Germany and the UAE
The state visit resulted in agreements extending beyond investments and trade, including cooperation in energy, data centres, transport, security, legal assistance, environmental issues, and information systems. An agreement was also made to explore a framework for defense and security collaboration. The new Strategic Dialogue aims to serve as a formal platform to facilitate cooperation across these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates has made a state visit to Germany.
Since establishing their strategic partnership in 2004, Germany and the UAE have laid the groundwork for many of the agreements announced during this visit. The €40 billion investment plan, which emphasizes the €10 billion allocated to Bavaria and the development of roughly 1 gigawatt of new data-centre capacity, now takes center stage in their economic agenda. The 29 business accords, with a combined value exceeding €9.356 billion, add a further layer of commercial activity to the broader bilateral framework.