The United Arab Emirates (UAE) has announced plans for a € 40 billion (US$ 46 billion) investment package in Germany as the two countries move to expand economic, energy and technology cooperation. The package was announced during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany from September 9 to 11, the first state visit to Germany by a UAE president. Sheikh Mohamed held talks with German President Frank-Walter Steinmeier and Chancellor Friedrich Merz.
According to a press release, the package includes investment in advanced digital infrastructure, including new data centers with a combined capacity of approximately 1 GW. The two sides also highlighted planned investments and partnerships involving Covestro, RWE, ADNOC and Masdar. The announcement adds to existing UAE investments in Germany, including XRG’s approximately € 15 billion (US$ 17 billion) investment in Covestro. UAE and German companies signed 30 business-to-business memorandum of understanding (MoU) and agreements during the visit, with a combined value exceeding € 9.66 billion (US$ 11 billion).
The governments signed a Joint Declaration of Intent (JDI) to establish a German-UAE Investment Council. The council will provide a platform for increasing investment and cooperation between companies and government institutions.
The two countries would also deepen cooperation in energy, with partnerships planned across LNG, renewable energy and hydrogen. They highlighted the role of bilateral energy projects in strengthening energy security and supporting industrial competitiveness. Bilateral non-oil trade reached € 13.5 billion (US$ 15.6 billion) in 2025, more than 14 percent from 2024. Cumulative investment flows between the two countries exceeded € 8.6 billion (US$ 10 billion) between 2021 and 2025. Germany and the UAE also welcomed progress in negotiations on a UAE-EU Comprehensive Economic Partnership Agreement.
Technology is a key pillar of the expanded relationship. The UAE and Germany agreed to strengthen cooperation in artificial intelligence and other emerging technologies through joint research, development and projects. They also signed a declaration to explore collaboration on data hosting and information systems, including the establishment of “Data Embassies” to support secure digital infrastructure. In addition, the two countries agreed to launch a Strategic Dialogue covering investment, defence, energy, climate, AI, digitalisation, transport, education and culture.