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    Home » Germany and UAE Strengthen Economic Relations with €40 Billion Investment Deal
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    Germany and UAE Strengthen Economic Relations with €40 Billion Investment Deal

    September 11, 2026
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    BERLIN, GERMANY / RankWire.AI / – A significant outcome of the recent state visit to Berlin is the agreement on a €40 billion investment package from the UAE to Germany, aimed at boosting economic collaboration. This initiative was part of a broader set of diplomatic engagements that included the launch of a Strategic Dialogue and the formation of a bilateral Investment Council. During the visit, UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz announced the signing of 12 government-level agreements, memoranda, and declarations. These cover sectors such as investment, energy, technology, aviation, security, legal cooperation, environmental issues, data systems, and culture. All of these measures extend the framework of the UAE-Germany Comprehensive Strategic Partnership that was established in 2004.

    UAE and Germany deepen ties with €40 billion investment
    UAE and Germany expand cooperation across investment, trade, energy and technology.

    The newly established Strategic Dialogue will facilitate collaboration across regional security, defense, trade, investment, energy, climate initiatives, digital transformation, transportation, education, and emerging technologies. Both countries also signed a declaration of intent to set up the German-UAE Investment Council, which will serve as a platform for engagement between public and private sectors on investment opportunities. Additionally, officials revived the Joint Economic Committee, creating an extra formal avenue for bilateral economic and trade discussions.

    Among the government agreements are new arrangements for UAE national carriers to access Berlin Airport via air transport. The accords also include cooperation on passenger processing, crime prevention, and mutual legal assistance in criminal matters. Separate documents focus on defense and security cooperation, environmental policies, data hosting, and information systems. Both nations committed to further expanding energy cooperation and signed a memorandum dedicated to cultural exchange.

    Economic Impact of €40 Billion Investment Package

    The visit culminated in an announcement of a €40 billion investment package from the UAE directed toward Germany. This plan emphasizes the development of advanced digital infrastructure, including the creation of new data centers with approximately 1 gigawatt of capacity. UAE and German companies also formalized 29 business agreements and memoranda valued at over 9.356 billion euros. These commercial arrangements complement the governmental agreements and significantly expand the scope of bilateral economic cooperation.

    Trade and investment figures underline the strong economic connection between the two countries. In 2025, UAE-Germany non-oil trade reached $15.5 billion, reflecting an increase of more than 14% from the prior year. Cumulative investment flows between the nations have surpassed $10 billion from 2021 through 2025. Both governments also highlighted ongoing negotiations toward a comprehensive trade agreement between the UAE and the European Union.

    Expansion in Energy, Technology, and Transportation Sectors

    The investment agenda features further corporate initiatives involving companies like Covestro, RWE, ADNOC, and Masdar. Existing UAE-linked investments in Germany include XRG’s roughly 15 billion euro stake in Covestro. The two countries also identified LNG, renewable energy, and hydrogen as key areas for continued collaboration in energy. Their agreements further encompass digital infrastructure, artificial intelligence, and other cutting-edge technologies within the bilateral framework.

    The state visit, held from September 9 to September 11, marked the first time a UAE president conducted a formal visit to Germany. Discussions in Berlin covered economic cooperation, technological development, energy, cultural ties, education, and regional issues. The establishment of the Strategic Dialogue, Investment Council, and the associated agreements provide new formal mechanisms to manage and deepen cooperation. Overall, the initiatives announced in Berlin include government policy, investment flows, private-sector agreements, transportation access, and major infrastructure projects.

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