BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates plans to invest €40 billion in Germany across industry, technology, energy and digital infrastructure. The package was announced during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz joined the UAE leader as both governments outlined a broader set of economic agreements. The investment plan includes €10 billion for projects in Bavaria, making the southern German state a major part of the announced commitment.
Digital infrastructure forms a significant part of the UAE investment package. The two governments outlined plans for advanced data centres with about 1 gigawatt of combined capacity in Germany. Their joint declaration also covered artificial intelligence, industrial development and energy projects. Germany agreed to support conditions for implementing the planned data-centre investments. The measures add to an expanding economic relationship between the UAE and Germany across technology, manufacturing, energy and other commercial sectors.
Companies from both countries signed 29 agreements and memoranda during the visit, with a combined value exceeding €9.356 billion. The UAE and Germany also agreed to establish a German-UAE Investment Council. The council will connect government institutions with private-sector companies and support investment activity between the two countries. Both sides also launched a Strategic Dialogue covering trade, technology, investment, energy, transport, education, security and other areas of bilateral cooperation.
Digital infrastructure anchors major investment package
The €40 billion commitment follows several large UAE-linked investments already connected to Germany. XRG has invested about €15 billion in chemicals group Covestro, according to the joint government declaration. Officials also identified cooperation involving Covestro, RWE, ADNOC and Masdar within the wider economic relationship. Those projects stand alongside the newly announced investment plan. The governments listed industrial development, advanced technology, artificial intelligence, digital infrastructure and energy among the main areas covered by the new package.
Trade between the UAE and Germany has also continued to grow. Non-oil trade reached $15.5 billion in 2025, an increase of more than 14% from the previous year. Cumulative investment flows between the two countries exceeded $10 billion from 2021 through 2025. The two governments also backed ongoing negotiations for a comprehensive trade agreement between the UAE and the European Union. They said the talks should address bilateral trade and support broader commercial ties.
Germany and UAE widen bilateral economic cooperation
The state visit produced agreements in areas beyond investment and trade. The two sides announced cooperation covering energy, data centres, transport, security, legal assistance, environmental matters and information systems. They also agreed to examine a framework for defence and security cooperation. The new Strategic Dialogue will provide a formal channel for work across these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a president of the United Arab Emirates.
Germany and the UAE established their strategic partnership in 2004, providing the framework for many of the agreements announced during the visit. The latest package places the €40 billion investment commitment at the center of their economic agenda. It also includes the €10 billion allocation for Bavaria and plans for about 1 gigawatt of new data-centre capacity. The 29 business agreements worth more than €9.356 billion add another commercial component to the broader set of bilateral announcements.