The UAE will invest an additional €40 billion in Germany as the two countries move to significantly deepen economic and strategic ties during President His Highness Sheikh Mohamed bin Zayed Al Nahyan’s state visit.
The major investment commitment was accompanied by 29 business agreements worth more than €9.4 billion, as Abu Dhabi and Berlin expanded cooperation across artificial intelligence, digital infrastructure, energy, aviation and other key sectors.
The announcements place investment and technology at the centre of a relationship that is becoming increasingly important to both countries, while the visit also brought discussions on security, defence and regional and international developments.
Sheikh Mohamed held talks with German Chancellor Friedrich Merz in Berlin, where the two leaders reviewed bilateral relations and explored opportunities to strengthen cooperation in areas of mutual interest.
The planned €40 billion investment comes on top of around €34 billion already invested by the UAE in Germany, signalling a substantial expansion of the country’s economic presence in Europe’s largest economy.
29 business agreements worth over €9.4 billion
The state visit also delivered a series of commercial agreements between companies from the UAE and Germany.
A total of 29 agreements worth more than €9.4 billion were announced, highlighting the growing role of private-sector cooperation in bilateral relations.
Technology and digital infrastructure are among the areas receiving increased attention. Plans include investment in data centres with a combined capacity of around one gigawatt, reflecting rapidly rising demand for infrastructure supporting artificial intelligence, cloud computing and other digital services.
The agreements could bring together Germany’s industrial and technological expertise with the UAE’s investment capabilities and growing focus on emerging industries.
Economic ties between the two countries have already expanded significantly. Non-oil trade between the UAE and Germany stands at around $15.5 billion annually, making Germany one of the UAE’s important European trading partners.
Technology and energy drive new cooperation
Energy remains a major part of the relationship.
The UAE and Germany have previously cooperated in areas including renewable energy, hydrogen and energy efficiency. Those links are expected to remain important as Germany continues its energy transition and the UAE increases investment in renewable and low-carbon technologies.
At the same time, the focus of the relationship is widening.
Artificial intelligence, data infrastructure and advanced technologies are taking a more prominent role alongside established areas such as trade, energy and manufacturing.
Germany is one of Europe’s leading industrial economies, with particular strengths in engineering, manufacturing and technology. The UAE has positioned itself as a major international investment hub while increasing investment in AI, digital infrastructure and clean energy.
The latest agreements reflect growing efforts to connect those strengths.
Berlin-Dubai air link moves closer
Aviation was another area of progress during the state visit.
Germany has agreed to provide additional traffic rights to UAE carrier Emirates, opening the way for a regular direct service between Dubai and Berlin.
The connection would strengthen air links between the two countries and provide another option for business travellers and tourists.
It could also support expanding commercial relations as companies increase investment and activity across the two markets.
Direct connectivity with Berlin has long been an important issue in aviation relations between Germany and the UAE. The latest development could therefore provide a practical boost to the wider economic partnership.
Security and regional developments discussed
The leaders also discussed security and defence cooperation as well as regional and international issues.
The talks took place against a backdrop of geopolitical uncertainty, pressure on global supply chains and changing economic relationships, factors that have encouraged countries to strengthen ties with key international partners.
Germany has sought to diversify its energy, investment and commercial relationships, while the UAE has continued to expand strategic partnerships with major economies in Europe and elsewhere.
Both countries have emphasised the importance of dialogue and international cooperation in supporting stability and economic resilience.
UAE-Germany relationship enters broader phase
The state visit marks another step in a relationship that has grown beyond its traditional foundations in trade and energy.
The UAE’s planned €40 billion in additional investment and the agreements announced by businesses from both countries underline the scale of the economic relationship.
The sectors involved also show where the partnership is heading.
Artificial intelligence, digital infrastructure, clean energy, industrial technology and aviation are increasingly becoming part of bilateral cooperation alongside established investment and commercial ties.
For the UAE, Germany remains an important source of industrial expertise and technology as well as a gateway to the wider European market. Germany, in turn, is seeking investment and stronger economic links with the Gulf and other fast-growing markets.
The commitments announced during Sheikh Mohamed’s state visit point to a broader, long-term partnership, with investment, technology and closer economic integration expected to shape the next phase of UAE-Germany relations.