BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Germany, the United Arab Emirates announced an unprecedented €40 billion investment initiative across various key industries. The comprehensive package encompasses sectors such as manufacturing, artificial intelligence, cutting-edge technology, digital infrastructure, and energy. German Chancellor Friedrich Merz participated in discussions related to these new economic commitments. Notably, €10 billion of this fund will be allocated to Bavaria, representing a substantial portion of the overall investment strategy.
In Berlin, digital infrastructure emerged as a pivotal element of the announced investment plan. The UAE and Germany detailed plans to develop advanced data centres with a combined capacity of approximately 1 gigawatt. Both nations also pinpointed artificial intelligence and industrial innovation as focal points within the package. Germany committed to supporting the necessary conditions for the success of these data-centre projects. The announcements broadened the scope of economic agreements made during the visit, further strengthening commitments in technology, energy, and industrial growth.
Another significant aspect of the visit was the formation of numerous business agreements. Representatives from both countries signed 29 deals and memoranda valued at over €9.356 billion. Additionally, the UAE and Germany agreed to establish a German-UAE Investment Council, designed to connect government agencies with private sector entities involved in bilateral investments. A new Strategic Dialogue was also launched, covering areas such as trade, energy, investment, technology, transport, education, and security, among other cooperation sectors.
Digital Investment Drives Broader Economic Ties
The €40 billion initiative follows several other major UAE-related investments in Germany. Notably, XRG has invested around €15 billion in Covestro, a leading German chemicals firm. The two governments also highlighted ongoing business activities involving Covestro, RWE, ADNOC, and Masdar. These projects complement the newly announced package and other agreements sealed during the official visit. The broader economic cooperation agenda covers industrial advancement, renewable energy, digital infrastructure, technological development, and strengthened corporate and governmental investment collaborations.
Trade relations have also expanded recently, with non-oil trade reaching $15.5 billion in 2025—an increase of more than 14% compared to 2024. Bilateral investment flows from 2021 to 2025 surpassed $10 billion. Furthermore, both countries supported ongoing negotiations aimed at a comprehensive trade agreement between the UAE and the European Union. Official statements indicated that these negotiations aim to enhance bilateral trade relations and bolster the framework for future economic cooperation.
Expanded Cooperation Through New Agreements
Beyond the core investment plans, the visit also resulted in accords covering energy, data centres, transportation, legal aid, environmental efforts, security, and information systems. Discussions included exploring a framework for defense and security collaboration, with the Strategic Dialogue serving as a formal mechanism for ongoing engagement across these fields. Sheikh Mohamed’s visit marked the first-ever state visit to Germany by a president of the United Arab Emirates and included high-level meetings with senior German officials.
Germany and the UAE established their strategic partnership in 2004, and these latest agreements expand upon that foundation with new investment and commercial initiatives. The €40 billion package, which remains the largest economic commitment announced during the visit, includes €10 billion designated for Bavaria and around 1 gigawatt of planned data-centre capacity. The 29 business agreements valued at more than €9.356 billion deepen the economic ties between the two nations, adding further momentum to their growing relationship.