The United Arab Emirates plans to invest €40bn ($46.4bn) in Germany over the long term, targeting artificial intelligence, advanced technology, digital infrastructure, industry and energy as the Gulf state deepens one of its largest investment relationships in Europe.
The package, announced during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, would roughly double the UAE’s existing investment position in the country, estimated at about €34bn. German Chancellor Friedrich Merz described the programme as a major vote of confidence in Germany’s industrial and innovation base.
About €10bn is earmarked for Bavaria, while the wider programme includes advanced digital infrastructure and new data centres with approximately 1GW of capacity, placing AI computing infrastructure among the most significant elements of the investment strategy.
The two governments also agreed to establish a UAE-Germany Investment Council to connect capital with commercial opportunities and launched a Strategic Dialogue spanning foreign policy, economics, energy and environmental cooperation.
The investment framework was accompanied by a substantial commercial pipeline. A UAE-Germany Business Forum in Munich produced 30 memoranda, agreements and partnerships valued at €9.66bn, covering renewable energy, AI, advanced technology, manufacturing, transport, healthcare and other sectors. The commercial agreements overlap in part with the broader programme and should not be treated as an additional €9.66bn on top of the €40bn package.
Energy remains central. ADNOC, XRG and Masdar signed agreements with German companies that could enable more than €5bn of investment, including prospective offshore-wind projects, LNG cooperation, low-carbon ammonia supply chains and advanced industrial technologies. Masdar and RWE are considering German offshore-wind investments exceeding €3bn, while ADNOC and RWE are working towards long-term LNG supply arrangements.
The programme builds on major existing UAE positions, including XRG’s approximately €15bn investment in Covestro and Masdar’s German offshore-wind exposure.
For Germany, the package offers long-term capital for energy-intensive industrial, technological and digital infrastructure. For the UAE, it expands access to German industrial expertise and creates opportunities to invest alongside companies capable of serving markets across Europe, the Gulf, Asia and Africa.
The result is less a departure from an established relationship than a broadening of it: from energy and industrial assets into AI computing, data infrastructure and advanced technology, increasing the UAE’s exposure to the systems underpinning Germany’s industrial and digital transition.
Related news:
Telecom Egypt Bets on Data Centres as First-Half Profit Jumps 47%
Canada Tests Deeper EU Integration as US Rift Widens
Read also:
North Coast Fee Cuts Redefine Egypt’s Real Estate Investment Framework
Egypt, Greece and Cyprus Build a Mediterranean Bridge to Europe
