BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from Sept. 9 to 11, the United Arab Emirates revealed plans to channel €40 billion into the German economy, focusing on key sectors. This financial package encompasses areas such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. The announcement was made as the UAE leader was hosted by German Chancellor Friedrich Merz. A significant portion, €10 billion, is designated for investments specifically in Bavaria.
Significant emphasis is placed on the development of advanced digital infrastructure within Germany, with the joint declaration from both governments outlining plans to establish new data centres with a combined capacity of about 1 gigawatt. Germany committed to creating supportive conditions to facilitate these projects. This investment forms part of a broader suite of economic agreements announced during the visit, which also outlined cooperation in technology, energy, trade, investment, and other areas within their bilateral partnership.
The state visit also resulted in the signing of 29 business agreements and memoranda of understanding between UAE and German firms, with their combined value surpassing €9.356 billion, as stated in the joint declaration. Additionally, both nations agreed to establish a German-UAE Investment Council, serving as a platform for investment opportunities and engagement between government agencies and private sector entities. The visit further launched a Strategic Dialogue that covers diverse sectors including economic, technological, security, energy, transport, environmental, cultural, and educational cooperation.
UAE’s €40 Billion Investment Plan Focuses on Industry and Digital Growth
This €40 billion pledge continues the trend of substantial UAE investments in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two governments also identified additional corporate investments and collaborations involving companies such as Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from, but complement, the announced €40 billion investment package. The main cooperation areas highlighted include industrial development, digital infrastructure, and energy sectors.
In recent years, economic relations between the UAE and Germany have expanded significantly. Non-oil trade between the two countries reached $15.5 billion in 2025, marking over a 14% increase compared to 2024. Investment flows from both sides have surpassed $10 billion from 2021 to 2025. Both governments also expressed their support for ongoing negotiations aimed at securing a comprehensive trade agreement between the UAE and European Union, emphasizing their backing for an agreement that would enhance bilateral trade relations.
Expanded UAE-Germany Economic Relations through New Agreements
Beyond investments and trade, the agreements from the visit include collaborations on energy, data centres, air transport, security, legal cooperation, environmental initiatives, and information systems. Discussions also covered establishing a framework for defence and security collaboration. An arrangement regarding air transport was also agreed upon to provide access rights for UAE national carriers at Berlin Airport. These measures support the broader Strategic Dialogue launched to coordinate cooperation across various sectors.
This visit marked the first time a president of the United Arab Emirates paid a state visit to Germany. It builds upon the bilateral strategic partnership formed in 2004. During the visit, Sheikh Mohamed met with German leaders in Berlin as both sides announced the €40 billion investment package, business agreements, and new cooperation mechanisms. The €40 billion commitment is the largest headline figure from the economic announcements, with €10 billion dedicated to Bavaria and plans for digital infrastructure that include approximately 1 gigawatt of data-centre capacity.
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