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 allocate €40 billion across key industries in Germany. The comprehensive investment plan encompasses sectors such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. German Chancellor Friedrich Merz was present to welcome the announcement alongside the UAE president. Out of the total, €10 billion will be directed toward initiatives in Bavaria.
A significant portion of the investment will go toward expanding digital infrastructure in Germany, with both governments releasing a joint declaration detailing their intentions to develop new data centres with an aggregate capacity of about 1 gigawatt. Germany committed to fostering conducive conditions for these projects to proceed. This initiative forms part of a broader set of economic agreements unveiled during the state visit, with both nations also emphasizing cooperation in areas such as technology, energy, trade, and investment as part of their bilateral partnership.
The visit resulted in 29 business agreements and memoranda between UAE and German companies, with a combined value exceeding €9.356 billion, according to the joint declaration. Furthermore, both countries agreed to establish a German-UAE Investment Council, intended to serve as a platform for investment activities and collaboration between government agencies and private enterprises. Additionally, a Strategic Dialogue covering economic, technological, security, energy, transport, environmental, cultural, and educational cooperation was launched.
UAE’s €40 Billion Investment Focuses on Industry and Digital Infrastructure
This €40 billion commitment builds on previous substantial UAE investments in Germany. The joint declaration notes that XRG has invested approximately €15 billion in Covestro. The two nations also outlined future plans for corporate investments and partnerships involving Covestro, RWE, ADNOC, and Masdar. These additional projects are separate from the €40 billion investment figure but highlight ongoing collaboration, with the main focus areas being industrial development, digital infrastructure, and energy.
Trade and economic relations between the UAE and Germany have grown notably in recent years. Non-oil trade between the countries hit $15.5 billion in 2025, reflecting an increase of over 14% compared to 2024. Cumulative investment flows surpassed $10 billion from 2021 to 2025. Both governments also reaffirmed their support for negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union, supporting a deal that is commercially ambitious for bilateral trade.
Strengthening Economic Bonds through New UAE-Germany Agreements
The agreements announced during the visit extend beyond investment and trade, including arrangements related to energy collaboration, data centres, air transport, security, legal cooperation, environmental initiatives, and information systems. The two nations also agreed to explore a framework for defence and security cooperation. An additional arrangement concerning air transport granted access rights to UAE national carriers at Berlin Airport. These measures are part of the broader Strategic Dialogue established to coordinate cooperation across multiple sectors.
This visit marked the first time a UAE president made a state visit to Germany. It also strengthened a bilateral strategic partnership initiated in 2004. Sheikh Mohamed held meetings with German leaders in Berlin, where both sides announced the investment plan, business agreements, and new cooperation initiatives. The €40 billion figure remains the headline element of the economic announcements, with €10 billion designated for Bavaria and plans to develop about 1 gigawatt of data-centre capacity as part of the digital infrastructure efforts.