The United Arab Emirates has pledged to invest €40 billion, or about $46.5 billion, in Germany in a major expansion of economic ties between the two countries. The new investment is intended to strengthen Germany’s industrial competitiveness and support long-term growth across areas including digital infrastructure, advanced technology, energy and industry.
The announcement followed a state visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan and talks with German Chancellor Friedrich Merz. The package comes on top of approximately €34 billion in existing UAE investment in Germany and was accompanied by 29 agreements between UAE and German companies worth more than €9.4 billion.
Key Overview
The €40 billion investment pledge marks one of the largest recent commitments by the UAE to a major European economy. Both governments said the package is designed to support Germany’s industrial base while deepening a strategic relationship that already spans trade, energy, technology, security and defence.
A central part of the joint economic and strategic agenda is digital infrastructure. The two countries plan to support new data centres in Germany with approximately 1 gigawatt of capacity, while Germany has committed to creating a favourable environment for their implementation.
UAE Capital Targets Germany’s Industrial Strength
The investment package reflects the UAE’s growing use of long-term capital to build strategic economic partnerships overseas. Germany offers a large industrial base, advanced engineering capabilities and deep expertise in manufacturing and technology, making it an important destination for capital seeking exposure to European industry.
The new commitment is additional to about €34 billion already invested by the UAE in Germany. By expanding that exposure, the UAE is signalling confidence in Germany’s long-term industrial and technological potential despite weaker growth and wider uncertainty affecting Europe’s largest economy.
The investment also comes as Berlin seeks to strengthen economic resilience and diversify important commercial partnerships. Chancellor Merz visited the Gulf earlier in 2026 as Germany worked to deepen energy and defence relationships and reduce excessive dependence on individual global partners.
Data Centres Become a Major Part of the Deal
Digital infrastructure is one of the most significant areas covered by the new package. The countries confirmed plans for new data centres with around 1 gigawatt of capacity, positioning computing infrastructure as an important part of their future economic relationship.
The expansion could support rising demand for cloud computing, artificial intelligence and other data-intensive services. Large-scale data-centre capacity has become increasingly important as governments and companies compete to secure the computing power required for AI development and digital services.
For Germany, additional investment could support its efforts to expand domestic digital capacity and attract technology-intensive projects. For the UAE, the initiative fits a broader strategy of investing in advanced technology and infrastructure alongside its established interests in energy and industry.
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Companies Sign More Than €9.4 Billion in Agreements
The state visit also produced a significant wave of private-sector agreements. UAE and German companies signed 29 deals worth more than €9.4 billion, with further corporate investments also planned.
The business agreements broaden the relationship beyond government-led investment and demonstrate growing commercial ties between companies in both countries. This could help translate the political partnership into new projects, capital flows and longer-term business relationships.
Both sides also agreed to strengthen cooperation across security, defence, trade and energy, showing that the investment package forms part of a wider strategic partnership rather than a standalone financial commitment.
Emirates Gains Access for Berlin-Dubai Service
Aviation was another significant outcome of the talks. Germany agreed to grant additional traffic rights for a UAE carrier, allowing Emirates to operate a regular service between Berlin and Dubai.
The decision was welcomed by the state of Brandenburg, where Berlin Brandenburg Airport is located, but drew criticism from Lufthansa. The disagreement reflects the competitive implications of giving Emirates greater access to the German aviation market.
For businesses and travellers, however, a direct Berlin-Dubai connection could strengthen links between Germany and one of the Gulf region’s largest transport and commercial hubs.
Energy and Geopolitics Strengthen the Partnership
Energy remains another important pillar of UAE-Germany relations. Germany has sought stronger partnerships with Gulf producers as it works to diversify energy supplies, while the UAE is simultaneously expanding its investments in renewable energy, technology and industrial assets.
The leaders described the state visit as taking place at a defining moment amid heightened geopolitical volatility. Their broader strategic declaration addressed cooperation on international security as well as the conflicts affecting the Middle East and Ukraine.
The €40 billion investment commitment therefore has significance beyond its headline value. Combined with more than €9.4 billion in corporate agreements, planned digital infrastructure, expanded aviation access and closer cooperation in energy and security, it points to a deeper long-term economic relationship between the UAE and Germany.
Sources: Reuters / Emirates News Agency / German Federal Government
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