UAE pledges 40 billion euros to expand German investments and build data centres

State visit and investment framework

The United Arab Emirates pledged to invest 40 billion euros (46.5 billion dollars) into the German economy on Thursday during a state visit by President Mohamed bin Zayed Al Nahyan to Berlin. The two-day visit began in the morning when President Frank-Walter Steinmeier welcomed the Emirati head of state with military honours. In the afternoon, Mohamed bin Zayed met with Chancellor Friedrich Merz for bilateral talks focused on expanding industrial and economic ties. The newly announced capital more than doubles the UAE's previous investment total of roughly 34 billion euros in Germany. To coordinate future projects and strengthen business relations between the two countries, Berlin and Abu Dhabi agreed to establish a dedicated Investment Council. In addition to the headline investment pledge, German and Emirati corporate representatives signed 29 bilateral agreements valued at 9.4 billion euros.

Germany has been an important strategic and economic partner for decades and the additional 40 billion euros intended investment reflects our ambition to invest in that relationship.

Targeted sectors and digital infrastructure

The planned capital allocation targets advanced digital infrastructure, key industrial manufacturing, and supply chain resilience. A specific component of the funding will support the construction of new data centres in Germany with a planned capacity of up to one gigawatt. Gulf states have increasingly directed energy revenue toward digital technologies and artificial intelligence infrastructure. Emirati authorities noted that the capital deployment will also support energy security, supply chain diversification, and skilled employment within German industries. UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber, who also leads Abu Dhabi state energy firm ADNOC, described the scope of the bilateral economic cooperation during the meetings.

Building on the 34 billion euros of investments already made by the Emirates in Germany, we will promote those industries, technologies and skilled jobs that drive future growth and competitiveness.

Bilateral trade and geopolitical backdrop

The UAE remains Germany's largest commercial partner in the Gulf region, with bilateral trade reaching over 13 billion euros (topping 15 billion dollars) last year. German exports to the UAE accounted for approximately 11 billion euros of that total, compared to roughly 2 billion euros in imports. German corporations, including Siemens, BMW, ThyssenKrupp, and rail operator Deutsche Bahn, maintain operations within the Emirates. Prior Emirati investments in Germany have focused on offshore wind power and the chemical industry. Security and defense ties have also expanded, with Gulf partners purchasing German defense equipment and exploring investments in drone startups to support NATO deterrence. The diplomatic push follows Chancellor Merz's visit to the Gulf in February 2026, where German utility RWE and ADNOC signed a memorandum of understanding covering liquefied natural gas supplies for the next decade.

We need such partnerships more than ever at a time when major powers are increasingly dominating politics.