BERLIN, GERMANY / RankWire.AI / – A €40 billion investment initiative by the United Arab Emirates aims to bolster various key industries within Germany. This substantial financial commitment was unveiled during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from Sept. 9 to 11. The plan encompasses sectors such as manufacturing, cutting-edge technology, artificial intelligence, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in welcoming the investment initiative alongside the UAE president. Of this amount, €10 billion will be directed toward projects in Bavaria.
This financial package involves significant funding for enhancing Germany’s digital infrastructure. A joint declaration from both governments outlined plans for establishing new data centres with a combined capacity of roughly 1 gigawatt. Germany pledged to facilitate favorable conditions for these developments. This initiative forms part of a broader series of economic agreements announced during the official visit. The two nations also committed to cooperation in areas such as technology, energy, trade, and investment, reinforcing their bilateral partnership.
Additionally, the visit resulted in 29 business accords and memoranda between UAE and German enterprises, with a total value exceeding €9.356 billion, as per the joint declaration. Both governments agreed to launch a German-UAE Investment Council, serving as a platform for investment opportunities and collaboration between governmental agencies and private sector entities. Furthermore, the UAE and Germany initiated a Strategic Dialogue that will focus on economic, technological, security, energy, transport, environmental, cultural, and educational cooperation.
UAE’s €40 billion investment targets industry growth and digital infrastructure development
Following other significant investments, the UAE’s €40 billion commitment emphasizes further expansion in Germany. According to the joint declaration, XRG has invested approximately €15 billion in Covestro. The two countries also outlined additional corporate investment plans involving Covestro, RWE, ADNOC, and Masdar. These initiatives are separate from the main €40 billion package but aim to bolster industrial growth, digital infrastructure, and energy cooperation, which are highlighted as primary areas of collaboration.
Over recent years, economic relations between the UAE and Germany have grown considerably. Non-oil trade between the two countries reached $15.5 billion in 2025, marking an increase of more than 14% from 2024. Total investment flows surpassed $10 billion from 2021 to 2025. Both governments also reaffirmed their support for negotiations aimed at establishing a comprehensive trade agreement between the UAE and European Union, emphasizing their desire for a commercially ambitious accord covering bilateral trade.
Expanded UAE-Germany economic cooperation through new bilateral agreements
The agreements announced during the state visit extend well beyond investment and trade, encompassing collaborations in energy, data centres, air transport, security, legal assistance, environmental initiatives, and information systems. The two nations also agreed to explore a framework for defense and security cooperation. An additional air transport agreement addressed access rights for UAE national carriers at Berlin Airport. These measures complement the broader Strategic Dialogue established to coordinate cooperation across various sectors.
This visit marked the first time a president of the United Arab Emirates undertook a state visit to Germany. It builds upon a bilateral strategic partnership initiated in 2004. During the visit, Sheikh Mohamed met with German leaders in Berlin as both sides announced the investment package, business agreements, and new cooperation initiatives. While the €40 billion investment is the headline figure, €10 billion will be allocated to Bavaria, with digital infrastructure plans covering approximately 1 gigawatt of data-centre capacity.