BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has unveiled a plan to allocate €40 billion across multiple key sectors in Germany. This financial commitment includes investments in industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from Sept. 9 to 11. German Chancellor Friedrich Merz participated in welcoming the investment plan alongside the UAE president. Of the total sum, €10 billion will be directed toward investments in Bavaria.
Central to the package is significant funding aimed at upgrading digital infrastructure in Germany. A joint declaration from the two governments outlined plans for new data centres with approximately 1 gigawatt of combined capacity. Germany pledged to facilitate the conditions necessary for their development. This initiative is part of broader economic agreements announced during the state visit, with both nations also emphasizing cooperation in technology, energy, trade, investment, and other areas within their bilateral partnership.
During the visit, 29 business agreements and memoranda were signed between UAE and German companies. The combined value of these accords exceeds €9.356 billion, according to the joint declaration. Additionally, both countries agreed to establish a German-UAE Investment Council, which will serve as a platform for fostering investment and collaboration between government agencies and private entities. The UAE and Germany also launched a Strategic Dialogue to cover sectors including economic development, technological progress, security, energy, transport, environmental issues, culture, and education.
UAE’s €40 Billion Investment Focuses on Industry and Digital Infrastructure
This €40 billion investment commitment follows other significant UAE ventures in Germany. According to the governments’ joint declaration, XRG has invested around €15 billion in Covestro. Furthermore, the two nations identified additional corporate investments and partnerships involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the new investment package rather than being included within the €40 billion total. The primary areas of cooperation highlighted by both governments are industrial development, digital infrastructure, and energy.
Recent years have seen an expansion of economic connections between the UAE and Germany. In 2025, non-oil trade between the nations reached $15.5 billion, a rise of over 14% compared to 2024. Investment flows accumulated to more than $10 billion from 2021 through 2025. Both governments expressed support for ongoing negotiations aimed at establishing a comprehensive trade agreement between the UAE and the European Union. Germany and the UAE advocate for an agreement that is commercially ambitious and enhances bilateral trade relations.
Expansion of UAE-Germany Economic Relations through New Agreements
The agreements announced during the visit extend beyond investments and trade, encompassing cooperation in energy, data centres, air transport, security, legal support, environmental efforts, and information systems. Discussions also included exploring a framework for defence and security collaboration. An additional arrangement on air transport addressed rights for UAE national carriers at Berlin Airport. These measures were part of the broader Strategic Dialogue established to coordinate cooperation across multiple sectors.
This visit marked the first state visit to Germany by a UAE president and built upon a bilateral strategic partnership initiated in 2004. Sheikh Mohamed met with German leaders in Berlin as both sides announced the investment package, business agreements, and new collaboration channels. The €40 billion commitment remains the most significant headline figure among the economic initiatives, with €10 billion allocated to Bavaria and digital infrastructure plans involving roughly 1 gigawatt of data-centre capacity.