BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has announced plans to invest €40 billion in Germany across several priority sectors. The package covers industry, advanced technology, artificial intelligence, digital infrastructure and energy. The announcement came during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from Sept. 9 to 11. German Chancellor Friedrich Merz joined the UAE president in welcoming the investment package. Of the total, €10 billion will target investments in Bavaria.
The investment package includes major spending on advanced digital infrastructure in Germany. A joint declaration from the two governments outlined plans for new data centres with about 1 gigawatt of combined capacity. Germany committed to supporting conditions for their implementation. The package forms one part of a wider set of economic agreements announced during the state visit. Both governments also outlined cooperation in technology, energy, trade, investment and other areas covered by their bilateral partnership.
The state visit also produced 29 business agreements and memoranda between UAE and German companies. Their combined value exceeds €9.356 billion, according to the joint declaration. The two countries also agreed to establish a German-UAE Investment Council. The council will provide a platform for investment and engagement between government bodies and private companies. The UAE and Germany also launched a Strategic Dialogue covering economic, technological, security, energy, transport, environmental, cultural and education cooperation.
UAE investment package targets industry and digital infrastructure
The €40 billion commitment follows other major UAE investments in Germany. XRG has made an investment of about €15 billion in Covestro, according to the governments’ joint declaration. The two countries also identified further corporate investment and partnership plans involving Covestro, RWE, ADNOC and Masdar. Those initiatives sit alongside the newly announced investment package rather than forming part of its stated €40 billion total. The governments highlighted industrial development, digital infrastructure and energy among the main areas of cooperation.
Economic ties between the UAE and Germany have expanded in recent years. Non-oil trade between the two countries reached $15.5 billion in 2025, rising more than 14% from 2024. Cumulative investment flows exceeded $10 billion between 2021 and 2025. The two governments also confirmed their support for negotiations on a comprehensive trade agreement between the UAE and European Union. Germany and the UAE said they support a commercially ambitious agreement covering bilateral trade relations.
Bilateral agreements broaden UAE-Germany economic ties
The agreements announced during the visit extend beyond investment and trade. The two countries signed arrangements covering energy cooperation, data centres, air transport, security, legal assistance, environmental cooperation and information systems. They also agreed to explore a framework for defence and security cooperation. A separate air transport arrangement addressed access rights for UAE national carriers at Berlin Airport. The measures accompanied the wider Strategic Dialogue, which the governments created to coordinate cooperation across multiple sectors.
The visit marked the first state visit to Germany by a president of the United Arab Emirates. It also built on a bilateral strategic partnership established in 2004. Sheikh Mohamed met German leaders in Berlin as both sides announced the investment package, business agreements and new cooperation mechanisms. The €40 billion commitment remains the largest headline element of the economic announcements, with €10 billion allocated to Bavaria and digital infrastructure plans covering about 1 gigawatt of data-centre capacity.