BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has revealed plans to allocate €40 billion across various key sectors in Germany. The funding encompasses areas such as industry, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. This initiative was announced during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany from September 9 to 11. German Chancellor Friedrich Merz joined the UAE leader in endorsing this substantial investment plan. Of the total sum, €10 billion will be directed toward investments specifically in Bavaria.
A significant component of the package involves substantial expenditure on developing Germany’s digital infrastructure. A joint declaration from the two governments laid out plans for establishing new data centres with a combined capacity of approximately 1 gigawatt. Germany committed to fostering supportive conditions for their deployment. This initiative is part of a broader set of economic agreements announced during the state visit. Both nations also detailed cooperation in technology, energy, trade, investment, and additional areas covered by their bilateral partnership.
During the visit, 29 business agreements and memoranda were signed between UAE and German companies, with their combined value exceeding €9.356 billion, according to the joint declaration. The two nations also agreed to form a German-UAE Investment Council, which will serve as a platform for investment and engagement between government agencies and private enterprises. Additionally, the UAE and Germany initiated a Strategic Dialogue that will focus on economic, technological, security, energy, transport, environmental, cultural, and educational collaboration.
UAE’s €40 Billion Investment Plan Emphasizes Industry and Digital Growth
This €40 billion pledge builds on prior major investments by the UAE in Germany. According to the governments’ joint declaration, XRG has invested around €15 billion in Covestro. Further corporate investments and collaborations involving Covestro, RWE, ADNOC, and Masdar were also highlighted, which exist alongside the newly announced package rather than forming part of its total. The main areas of cooperation identified include industrial development, digital infrastructure, and energy sectors.
Economic relations between the UAE and Germany have grown notably in recent years. In 2025, non-oil trade between the two nations reached $15.5 billion, marking an increase of over 14% from 2024. Cumulative investment flows surpassed $10 billion from 2021 to 2025. The two governments also reaffirmed their support for negotiations on a comprehensive trade agreement between the UAE and the European Union. Both countries expressed backing for an ambitious trade deal aimed at strengthening bilateral commercial relations.
Expansion of UAE-Germany Economic Ties Through New Agreements
The agreements introduced during the visit extend beyond investment and trade to include arrangements on energy cooperation, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. An additional framework for defence and security collaboration was also discussed. A separate air transport agreement was signed to establish access rights for UAE national carriers at Berlin Airport. These measures complement the broader Strategic Dialogue created by both governments to coordinate cooperation across multiple sectors.
The visit marked the first state visit to Germany by a leader of the United Arab Emirates. It also followed the establishment of a bilateral strategic partnership in 2004. Sheikh Mohamed met with German officials in Berlin as both sides announced the investment plan, business agreements, and new cooperation frameworks. The €40 billion commitment remains the most prominent aspect of the economic announcements, with €10 billion allocated to Bavaria and digital infrastructure projects involving approximately 1 gigawatt of data-centre capacity.