BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed intentions to allocate €40 billion into Germany across multiple key sectors, including industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. This declaration was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany from September 9 to 11, with German Chancellor Friedrich Merz joining the UAE leader in endorsing the investment plan. Out of the total, €10 billion will be directed towards investments specifically in Bavaria.
Central to this initiative is substantial funding aimed at enhancing Germany’s digital infrastructure, with a joint declaration from both governments detailing plans to establish new data centres with a combined capacity of about 1 gigawatt. Germany has committed to creating favorable conditions for these projects. This investment forms part of a broader set of economic accords announced during the state visit, with both nations also outlining cooperation in fields like technology, energy, trade, and investment as part of their bilateral partnership.
During the visit, 29 business agreements and memoranda of understanding were signed between UAE and German firms, representing a combined value exceeding €9.356 billion, according to the joint declaration. Additionally, both countries agreed to establish a German-UAE Investment Council, serving as a platform for investment and engagement between government agencies and private enterprises. The UAE and Germany also launched a Strategic Dialogue to foster collaboration in economic, technological, security, energy, transport, environmental, cultural, and educational sectors.
UAE allocates €40 billion for industry and digital projects
This €40 billion pledge follows other significant UAE investments in Germany, including XRG’s approximately €15 billion investment in Covestro, as per the governments’ joint declaration. The two nations also outlined further corporate investment and partnership strategies involving Covestro, RWE, ADNOC, and Masdar, which complement the new investment package rather than counting toward its €40 billion total. The governments highlighted cooperation primarily in industrial development, digital infrastructure, and energy sectors.
Economic relations between the UAE and Germany have grown notably in recent years, with non-oil trade reaching $15.5 billion in 2025—a rise of over 14% from 2024—and cumulative investments exceeding $10 billion between 2021 and 2025. Both governments also reaffirmed their backing for negotiations toward a comprehensive trade agreement between the UAE and the European Union, supporting a commercially ambitious deal covering bilateral trade relations.
Strengthening UAE-Germany economic cooperation
The agreements made during the visit extend beyond investments and trade, encompassing arrangements on energy collaboration, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. They also agreed to develop a framework for defense and security cooperation. A separate air transport agreement addressed access rights for UAE national carriers at Berlin Airport. These measures support the broader Strategic Dialogue designed to coordinate cooperation across multiple sectors.
This visit marked the first time a UAE president conducted a state visit to Germany, reinforcing a bilateral strategic partnership established in 2004. Sheikh Mohamed met German officials in Berlin as both sides announced the investment plan, business agreements, and new avenues for cooperation. The €40 billion investment remains the headline feature of the economic initiatives, with €10 billion allocated to Bavaria and digital infrastructure projects covering about 1 gigawatt of data-centre capacity.