BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany, the United Arab Emirates announced plans to allocate €40 billion toward various sectors including industry, technology, energy, and digital infrastructure. The announcement was made in the context of the state visit, which also involved German Chancellor Friedrich Merz in discussions focusing on new economic initiatives. The investment package designates €10 billion specifically for projects in Bavaria and encompasses investments in artificial intelligence, cutting-edge technology, and initiatives linked to Germany’s industrial sector.
A significant component of the initiative focuses on digital infrastructure development. Both nations outlined plans for creating advanced data centres with a combined capacity of about 1 gigawatt. Germany committed to facilitating the conditions necessary for these projects to move forward. The broader framework also promotes cooperation in energy and industrial technology. Officials highlighted these measures as part of a wider set of agreements formed during the state visit, which brought together representatives from both government and private sector entities.
In total, companies from the UAE and Germany executed 29 agreements and memoranda valued at over €9.356 billion. Additionally, the two governments agreed to establish a German-UAE Investment Council, serving as a platform for public institutions and private companies to collaborate on bilateral investments. A new Strategic Dialogue will also be initiated to address trade, investment, technology, energy, transport, education, security, and other key sectors. These mechanisms were part of the broader suite of announcements made during the official visit.
Data centres are central to the investment strategy
The €40 billion initiative complements existing UAE-related investments in Germany. For instance, XRG has invested approximately €15 billion in the German chemicals firm Covestro. The two governments also highlighted ongoing commercial activities involving Covestro, RWE, ADNOC, and Masdar as components of the broader bilateral relationship. These projects coexist with the newly announced investment plans rather than replacing them. The latest commitments span multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade between Germany and the UAE has seen significant growth. In 2025, non-oil trade between the two countries reached $15.5 billion, representing an increase of over 14% compared to the previous year. Cumulative investments from 2021 to 2025 surpassed $10 billion. Furthermore, the UAE and Germany expressed support for negotiations on a comprehensive trade agreement between the UAE and the European Union, aimed at strengthening bilateral trade relations and establishing a broader commercial framework.
Additional bilateral agreements extend beyond commerce and investment
The state visit resulted in agreements across several other areas. The two nations committed to cooperation 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 an official avenue for cooperation in these fields. Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates has made a state visit to Germany, representing a significant diplomatic milestone in their bilateral relations.
Since establishing their strategic partnership in 2004, Germany and the UAE have continuously expanded their collaborative efforts. The recent announcements introduce a new set of investment and commercial initiatives within that framework. The €40 billion investment package remains the key economic commitment stemming from the visit, including €10 billion allocated for Bavaria and plans to develop approximately 1 gigawatt of data-centre capacity. The 29 business agreements, valued at more than €9.356 billion, further reinforce the expanding economic ties across diverse sectors.