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 toward various sectors including industry, technology, energy, and digital infrastructure. The announcement was made in conjunction with discussions involving German Chancellor Friedrich Merz. The financial package includes €10 billion designated for investments specifically in Bavaria. It also emphasizes advancements in artificial intelligence, cutting-edge technology, and initiatives supporting Germany’s industrial sector.
A significant part of the investment strategy focuses on digital infrastructure, particularly the development of advanced data centres with a combined capacity of about 1 gigawatt. Germany committed to creating a conducive environment for implementing these projects. The comprehensive plan also promotes collaboration in energy and industrial technology. Officials described these measures as part of a broader set of agreements reached during the state visit, which saw participation from government representatives and corporate entities from both nations.
In total, companies from the UAE and Germany signed 29 agreements and memoranda valued at over €9.356 billion. Both governments also agreed to establish a German-UAE Investment Council to serve as a platform for public institutions and private enterprises involved in bilateral investments. Additionally, a new Strategic Dialogue will be set up to facilitate cooperation in areas such as trade, investment, technology, energy, transport, education, security, and more. These mechanisms are part of the larger framework of commitments announced during the visit.
Data centres are a key component of the investment initiative
The €40 billion investment plan complements existing UAE-related investments in Germany. For example, XRG has invested approximately €15 billion in German chemicals giant Covestro. The governments also highlighted ongoing commercial collaborations involving Covestro, RWE, ADNOC, and Masdar as integral parts of the bilateral relationship. These projects coexist with the newly announced investment package rather than replacing it. The latest commitments encompass various sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between the two nations has seen notable growth, with UAE-Germany non-oil trade reaching $15.5 billion in 2025—a rise of over 14% compared to the previous year. Cumulative investment flows from 2021 to 2025 exceeded $10 billion. Furthermore, the UAE and Germany supported negotiations for a comprehensive trade agreement between the UAE and the European Union. Both governments stated that these talks should aim to improve bilateral trade relations and establish a broader framework for commercial activities.
Partnerships extend into multiple sectors beyond trade and investment
The state visit resulted in agreements across several additional domains. The two sides announced cooperation initiatives in energy, data centres, air transport, legal assistance, environmental issues, security, and information systems. They also agreed to explore a framework for defence and security collaboration. The Strategic Dialogue will serve as a formal platform to advance efforts in these sectors. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany, marking a new milestone in their diplomatic relations.
Germany and the UAE formalized their strategic partnership in 2004. The latest set of announcements introduces new investment and commercial measures to this existing framework. The €40 billion investment package remains the central economic commitment from the visit, including €10 billion allocated for Bavaria and plans for approximately 1 gigawatt of data centre capacity. The 29 business agreements worth over €9.356 billion further expand the scope of commercial cooperation across various sectors linked to the growing economic ties between the two countries.