The United Arab Emirates has committed to investing 40 billion euros ($46.5 billion) in Germany across artificial intelligence, data centers, advanced technology and energy, as both countries move to deepen their economic and strategic partnership.
The investment commitment was announced during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, where he held talks with German Chancellor Friedrich Merz.
The new pledge comes in addition to roughly 34 billion euros ($39.45 billion) the UAE has already invested in Germany, underscoring the growing importance of bilateral economic relations and the two countries’ plans to expand cooperation in high-growth industries.
Around 10 billion euros ($11.6 billion) of the new investment is expected to be directed toward projects in Bavaria, one of Germany’s leading industrial and technology hubs. The allocation reflects the UAE’s interest in Germany’s manufacturing strength, research capabilities and innovation ecosystem.
Data centers and AI infrastructure
Data infrastructure is expected to be a major component of the investment program. The UAE and Germany plan to support the development of new data centers with approximately 1 gigawatt of capacity.
German authorities have agreed to work toward creating the necessary conditions to facilitate the projects, according to officials. The initiative comes as demand for computing infrastructure continues to rise amid the rapid expansion of artificial intelligence and other data-intensive technologies.
The investment plans also cover energy infrastructure, including renewable energy, hydrogen and energy-efficiency projects.
As part of the broader technology partnership, the two countries intend to establish a dedicated framework for cooperation that will connect researchers, investors and companies. The initiative is designed to encourage innovation, accelerate technology development and create new commercial opportunities.
For the UAE, stronger ties with Germany could provide greater access to advanced engineering, industrial expertise and research capabilities as the country continues its drive toward a knowledge- and technology-based economy.
Germany, meanwhile, stands to benefit from additional UAE capital for infrastructure, energy and technology projects at a time when Berlin is seeking to strengthen its industrial base and attract international investment.
€9.4 billion in corporate agreements
The two governments also welcomed 29 agreements between UAE and German companies with a combined value of more than 9.4 billion euros ($10.91 billion). Additional corporate investments are expected to follow as bilateral economic cooperation expands.
The latest commitments come as Germany seeks to reinforce its industrial competitiveness, diversify energy partnerships and strengthen economic relationships beyond Europe.
Chancellor Friedrich Merz previously traveled to the Gulf region in February as Berlin sought to expand cooperation in areas including energy and defense.
The UAE and Germany have maintained longstanding economic ties, with bilateral non-oil trade estimated at around 13.35 billion euros ($15.5 billion) annually.
Beyond investment and trade, the two countries are also expanding cooperation in security, defense, commerce and energy. The latest investment commitments mark a further step toward a broader economic and strategic partnership that both sides hope will support growth and innovation in the years ahead.
