BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the UAE announced plans to channel €40 billion into various key sectors across the country. This comprehensive investment encompasses industry, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions related to these new economic initiatives. Of this total, €10 billion is allocated for projects in Bavaria, signifying a substantial contribution to the overall plan.
A significant focus of the investment is digital infrastructure. The UAE and Germany laid out plans for state-of-the-art data centres with a combined capacity of approximately 1 gigawatt. Both nations also identified artificial intelligence and industrial tech as key focus areas. Germany committed to supporting the prerequisites for the data-centre developments. These announcements broaden the scope of economic agreements announced during the visit, emphasizing technology, energy, and industrial growth initiatives.
Business collaborations formed a major element of the visit, with 29 agreements and memoranda between companies from both countries totaling over €9.356 billion. An agreement was also reached to establish a German-UAE Investment Council, which will facilitate connections between public agencies and private firms involved in bilateral investments. Additionally, both countries launched a Strategic Dialogue covering trade, energy, investment, technology, transport, education, security, and other areas of cooperation.
Expansion of Digital Investments Broadens Economic Collaboration
The €40 billion investment package builds upon existing UAE-linked projects in Germany, including XRG’s €15 billion stake in Covestro, a major German chemicals firm. Both governments highlighted ongoing collaborations involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the newly announced plan and other agreements signed during the state visit. The broader strategic agenda emphasizes industrial growth, renewable energy, digital infrastructure, technological advancement, and strengthened corporate and governmental ties.
Trade relations have also surged recently, with non-oil trade reaching $15.5 billion in 2025, marking an increase of over 14% from 2024. Total investments between the countries surpassed $10 billion from 2021 to 2025. The UAE and Germany have also backed negotiations for a comprehensive trade deal with the European Union, aimed at enhancing bilateral trade and refining the framework for economic cooperation.
Additional Agreements Broaden UAE-Germany Partnership
Beyond the core investment plan, the visit yielded agreements on energy, data centres, transport, legal cooperation, environmental initiatives, security, and information systems. Both nations agreed to explore a framework for defence and security collaboration, with the Strategic Dialogue serving as a formal platform for ongoing engagement in these sectors. Sheikh Mohamed’s visit marked the first state visit to Germany by a UAE president, featuring meetings with senior German officials.
Since establishing their strategic partnership in 2004, Germany and the UAE have expanded their cooperation. The latest agreements introduce new investment and trade measures, with the €40 billion package being the largest economic commitment announced during the visit. It includes €10 billion allocated to Bavaria and approximately 1 gigawatt of planned data-centre capacity. The 29 business accords, valued at more than €9.356 billion, further deepen the economic ties between these nations.