BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed a €40 billion investment plan directed at Germany, targeting key sectors such as industry, advanced technology, artificial intelligence, digital infrastructure, and energy. This announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from September 9 to 11. German Chancellor Friedrich Merz joined the UAE leader in welcoming this substantial investment package. Of the total, €10 billion will be directed toward projects in Bavaria.
A significant part of the investment package emphasizes the development of advanced digital infrastructure within Germany. A joint declaration from both governments outlined plans for new data centres with a combined capacity of approximately 1 gigawatt. Germany has committed to facilitating conditions necessary for their deployment. This initiative forms one component of a broader series of economic agreements announced during the state visit. Additionally, both nations detailed cooperation in technology, energy, trade, and investment, among other areas of their bilateral relationship.
During the visit, 29 business agreements and memoranda of understanding were signed between UAE and German companies. The total value of these accords exceeds €9.356 billion, as stated in the joint declaration. Furthermore, the two countries agreed to establish a German-UAE Investment Council, which will serve as a platform to foster investment and collaboration between government entities and private enterprises. A new Strategic Dialogue covering sectors such as economic development, technology, security, energy, transport, environmental protection, culture, and education was also initiated.
UAE’s €40 billion investment plan emphasizes industry and digital infrastructure
This €40 billion pledge builds on previous UAE investments in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. Both nations also identified future corporate investments and partnership plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from the newly announced investment package and do not count toward the €40 billion total. The governments emphasized collaboration in industrial development, digital infrastructure, and energy sectors.
Trade and investment ties between the UAE and Germany have grown significantly over recent years. Non-oil trade between the two countries reached $15.5 billion in 2025, representing an increase of over 14% compared to 2024. Cumulative investments from 2021 to 2025 surpassed $10 billion. Both governments also expressed support for negotiations on a comprehensive trade agreement between the UAE and the European Union. Germany and the UAE both favor an agreement that is commercially ambitious and enhances bilateral trade relations.
Expansion of UAE-Germany economic cooperation through bilateral accords
The agreements announced during the visit go beyond investment and trade. The two nations signed accords related to energy cooperation, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. They also agreed to explore a framework for defence and security collaboration. An additional air transport agreement addressed access rights for UAE national carriers at Berlin Airport. These measures complement the wider Strategic Dialogue established to coordinate efforts across multiple sectors.
This visit marked the first time a UAE president has undertaken a state visit to Germany. It further builds upon the bilateral strategic partnership established in 2004. Sheikh Mohamed met with German leaders in Berlin as both sides announced the investment package, various business agreements, and new cooperation mechanisms. The €40 billion investment remains the headline element of the economic announcements, with €10 billion allocated to Bavaria and digital infrastructure plans covering about 1 gigawatt of data-centre capacity.