BERLIN, GERMANY / RankWire.AI / – During a state visit to Germany, the United Arab Emirates unveiled plans to commit €40 billion towards sectors including industry, technology, energy, and digital infrastructure. The announcement was made in the context of President Sheikh Mohamed bin Zayed Al Nahyan’s diplomatic trip. German Chancellor Friedrich Merz also participated in discussions related to this substantial economic endeavor. The investment includes €10 billion earmarked for Bavaria and focuses on artificial intelligence, cutting-edge technology, and initiatives supporting Germany’s industrial sector.
A key element of this investment plan is the development of digital infrastructure. Both nations outlined a strategy to establish advanced data centres with a combined capacity of approximately 1 gigawatt. Germany committed to creating a supportive environment necessary for these projects to proceed. The broader package also emphasizes collaboration in energy and industrial technology sectors. These measures are part of a wider set of agreements reached during the official visit, which brought together government officials and business leaders from both countries.
From the private sector, companies from the UAE and Germany entered into 29 agreements and memoranda valued at over €9.356 billion. Additionally, the two governments agreed to launch a German-UAE Investment Council, offering a platform for public agencies and private firms engaged in bilateral investments. The newly formed Strategic Dialogue will address areas including trade, investment, technology, energy, transport, education, and security. These mechanisms were among the key components of the broader set of initiatives announced during the official visit.
Data centres constitute a core element of the investment plan
The €40 billion initiative builds upon existing UAE-related investments in Germany. XRG has already invested approximately €15 billion in the German chemicals firm Covestro. The governments also identified ongoing commercial activities involving Covestro, RWE, ADNOC, and Masdar as integral parts of the wider bilateral relationship. These ongoing projects are complementary to, rather than replacing, the new investment commitments. The latest pledges encompass multiple sectors, including industry, artificial intelligence, digital infrastructure, advanced technology, and energy.
Trade relations between Germany and the UAE have also seen substantial growth. In 2025, non-oil trade between the two countries reached $15.5 billion, marking an increase of over 14% compared to the previous year. Cumulative investments from 2021 to 2025 have surpassed $10 billion. Both nations also supported negotiations for a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral commercial relations and establish a broader framework for economic cooperation.
Additional bilateral agreements extend beyond commerce and investment
The state visit resulted in agreements across several other fields. Both parties committed to collaborate on energy, data centres, air travel, legal assistance, environmental issues, security, and information technology. They also agreed to explore a framework for defence and security cooperation, with the Strategic Dialogue acting as a formal platform for progress in these sectors. Sheikh Mohamed’s trip marked the first-ever state visit to Germany by a president of the United Arab Emirates, representing a significant diplomatic milestone in their relationship.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The recent announcements introduce a new array of investment and commercial initiatives to this relationship. The €40 billion investment package remains the central economic pledge from the visit, including €10 billion allocated to Bavaria and plans for about 1 gigawatt of data-centre capacity. The 29 agreements, valued at more than €9.356 billion, further reinforce commercial ties across diverse sectors linked to the expanding bilateral economic partnership.