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 commit €40 billion to various sectors within Germany. This substantial investment package encompasses areas such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. German Chancellor Friedrich Merz joined the UAE president in celebrating the announcement. From this total, €10 billion is designated specifically for investments in Bavaria.
In Berlin, the announcement highlighted significant funding aimed at advancing digital infrastructure across Germany. A joint declaration from both nations outlined intentions to develop new data centres with an aggregate capacity of approximately 1 gigawatt. Germany pledged to facilitate the necessary conditions for these projects’ realization. This investment forms part of a broader suite of economic agreements revealed during the state visit, with both countries also emphasizing collaboration in technology, energy, trade, and other areas of bilateral cooperation.
Alongside the official talks, 29 business agreements and memoranda of understanding were signed between UAE and German companies, collectively valued at over €9.356 billion, as stated in the joint declaration. The two governments also agreed to establish a German-UAE Investment Council, designed to serve as a platform for investment and engagement among government entities and private sector partners. Additionally, a Strategic Dialogue was launched to address issues spanning economic, technological, security, energy, transport, environmental, cultural, and educational cooperation.
UAE’s €40 billion plan prioritizes industrial growth and digital infrastructure
This latest €40 billion pledge builds on previous significant UAE investments in Germany. According to the joint declaration, XRG has invested around €15 billion in Covestro. The two nations also identified additional corporate investment opportunities and partnership plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from the announced €40 billion total but complement it, with the main focus remaining on industrial development, digital infrastructure, and energy cooperation.
Over recent years, economic relations between the UAE and Germany have strengthened considerably. In 2025, non-oil trade between the nations reached $15.5 billion, representing a growth of more than 14% compared to 2024. Investment flows from the UAE to Germany exceeded $10 billion from 2021 to 2025. Furthermore, both governments reaffirmed their support for negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. They expressed their backing for a trade deal that is both ambitious and commercially beneficial.
New agreements deepen economic cooperation between UAE and Germany
The agreements made during the visit extend beyond just investment and trade. The two nations signed accords related to energy cooperation, data centres, air transport, security, legal aid, environmental initiatives, and information systems. They also committed to exploring a framework for defence and security collaborations. An additional air transport agreement was established to grant access rights for UAE national carriers at Berlin Airport. These steps accompanied the broader Strategic Dialogue, which was set up to coordinate cooperation across multiple sectors.
This visit marked the first time a president of the United Arab Emirates made a state visit to Germany. It also built upon a bilateral strategic partnership that has been in place since 2004. Sheikh Mohamed met with German leaders in Berlin amid the announcements of the €40 billion investment package, various business agreements, and new cooperation mechanisms. The €40 billion figure remains the most prominent element of the economic plans, with €10 billion allocated to Bavaria and a focus on digital infrastructure, including roughly 1 gigawatt of data-centre capacity.