BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates plans to invest €40 billion in Germany across several major sectors. The package covers industry, artificial intelligence, advanced technology, digital infrastructure and energy. The announcement came during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. German Chancellor Friedrich Merz took part in talks surrounding the new economic commitments. The package includes €10 billion for investments in Bavaria, giving the state a significant share of the overall plan.
Digital infrastructure represents a central part of the announced investment program. The UAE and Germany outlined plans for advanced data centres with about 1 gigawatt of combined capacity. Both governments also identified artificial intelligence and industrial technology as areas covered by the package. Germany said it would support conditions needed for the data-centre projects. The announcements expanded the range of economic agreements presented during the visit and added new commitments across technology, energy and industrial development.
Business agreements formed another major part of the visit. Companies from the two countries signed 29 agreements and memoranda worth more than €9.356 billion. The UAE and Germany also agreed to create a German-UAE Investment Council. The council will connect public institutions and private companies involved in bilateral investment. Both countries also launched a Strategic Dialogue that covers trade, energy, investment, technology, transport, education, security and other areas of cooperation.
Digital investment expands economic agenda
The €40 billion package follows other large UAE-linked investments in Germany. XRG has invested about €15 billion in Covestro, a major German chemicals company. The two governments also highlighted business activity involving Covestro, RWE, ADNOC and Masdar. Those projects sit alongside the newly announced package and other agreements signed during the state visit. The broader economic agenda includes industrial development, clean energy, digital infrastructure, technology and investment ties between companies and public institutions in both countries.
Trade between the UAE and Germany has also grown in recent years. Non-oil trade reached $15.5 billion in 2025, up more than 14% from 2024. Cumulative investment flows between the two countries exceeded $10 billion from 2021 through 2025. The UAE and Germany also supported negotiations for a comprehensive trade agreement between the UAE and the European Union. Both governments said the talks should address bilateral trade and strengthen the framework governing commercial relations.
New agreements widen UAE-Germany cooperation
The visit also produced agreements outside the core investment package. The two sides covered energy, data centres, transport, legal assistance, environmental cooperation, security and information systems. They also agreed to explore a framework for defence and security cooperation. The Strategic Dialogue will provide a formal channel for continued work across these sectors. Sheikh Mohamed’s trip marked the first state visit to Germany by a president of the United Arab Emirates and included meetings with senior German leaders.
Germany and the UAE established their strategic partnership in 2004. The latest agreements add new investment and commercial measures to that existing framework. The €40 billion package remains the largest economic commitment announced during the visit. It includes €10 billion directed toward Bavaria and about 1 gigawatt of planned data-centre capacity. The 29 business agreements worth more than €9.356 billion add another layer to the expanded economic relationship between the two countries.