BERLIN, GERMANY / RankWire.AI / – The United Arab Emirates has unveiled a plan to allocate €40 billion into various key industries throughout Germany. This funding encompasses sectors such as manufacturing, cutting-edge technology, artificial intelligence, digital networks, and energy. The announcement was made during President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany from Sept. 9 to 11, with German Chancellor Friedrich Merz participating in welcoming the investment initiative. Notably, €10 billion of this fund will be directed toward Bavaria.
A significant portion of the €40 billion is dedicated to enhancing Germany’s digital infrastructure. Both governments issued a joint declaration outlining plans for new data centres with an overall capacity of approximately 1 gigawatt, with Germany committing to creating conducive conditions for their development. This initiative forms part of a broader set of economic agreements announced during the state visit, which also included collaborations in technology, energy, trade, and investment sectors as part of their bilateral partnership.
The visit resulted in 29 business agreements and memoranda between UAE and German firms, with a combined worth exceeding €9.356 billion, according to the joint declaration. Additionally, the two nations agreed to establish a German-UAE Investment Council to serve as a platform for investment and engagement between governmental and private entities. A Strategic Dialogue was also launched, focusing on areas such as economic development, technology, security, energy, transport, environmental issues, cultural exchange, and education cooperation.
UAE’s €40 billion investment focuses on industry growth and digital infrastructure
Following other substantial UAE investments in Germany, the €40 billion commitment includes XRG’s recent €15 billion investment in Covestro, as stated in the joint declaration. The two nations also identified additional corporate investments and partnerships involving Covestro, RWE, ADNOC, and Masdar. These initiatives complement the main investment plan rather than forming part of its total €40 billion. Both governments highlighted cooperation in industrial development, digital infrastructure, and energy sectors.
Trade relations between the UAE and Germany have grown significantly in recent years. Non-oil trade reached $15.5 billion in 2025, increasing by over 14% from 2024. Cumulative investments surpassed $10 billion from 2021 to 2025. Both governments also confirmed their support for negotiations on a comprehensive trade agreement between the UAE and the European Union, emphasizing their backing for a commercially ambitious deal covering bilateral trade.
Economic ties deepen with new UAE-Germany agreements
The agreements announced extend beyond investment and trade, encompassing cooperation in energy, data centres, aviation, security, legal aid, environmental issues, and information systems. They also agreed to explore a framework for defence and security collaboration. An additional air transport agreement was signed to secure access rights for UAE national carriers at Berlin Airport. These measures are part of the broader Strategic Dialogue, created to coordinate cooperation across multiple sectors.
This visit marked the first official state visit to Germany by a UAE president and built upon their bilateral strategic partnership established in 2004. Sheikh Mohamed met German leaders in Berlin as both sides announced the investment plan, business agreements, and new cooperation initiatives. The €40 billion investment remains the most prominent headline, with €10 billion allocated to Bavaria and digital infrastructure plans supporting about 1 gigawatt of data-centre capacity.