The United Arab Emirates plans to invest 40 billion euros ($46.4 billion) in Germany, committing roughly 1 gigawatt of new data-center capacity and targeting artificial intelligence and energy infrastructure. The major economic package was announced during a state visit to Berlin by UAE President Sheikh Mohamed bin Zayed Al Nahyan.
A Major State Visit and Economic Pledges in Berlin
German Chancellor Friedrich Merz welcomed UAE President Sheikh Mohamed bin Zayed Al Nahyan to the Federal Chancellery for a high-profile state visit, marking a substantial deepening of bilateral ties between Europe’s largest economy and its key Gulf partner. The visit involved tight security, with Berlin cordoning off flag-lined streets and deploying large numbers of police as the two leaders met following military honors by German President Frank-Walter Steinmeier.
At the center of the diplomatic engagement is a massive financial commitment. The UAE announced plans to invest 40 billion euros, equivalent to approximately $46.4 billion according to CNBC reporting, or $46.5 billion as detailed by Daily Sabah. This incoming capital builds upon roughly 34 billion euros that the UAE has already poured into Germany’s chemicals, renewable energy, and industrial sectors.
Targeting Data Centers, Artificial Intelligence, and Regional Bavaria
The investment package is heavily weighted toward digital infrastructure and advanced technology. As global demand for computing power surges alongside artificial intelligence, the agreement includes plans for data centers in Germany with a capacity of approximately 1 gigawatt.
Of the total 40-billion-euro commitment, 10 billion euros is earmarked directly for Bavaria, serving as a vital injection of capital into one of Germany’s primary industrial and technological powerhouses. Beyond digital infrastructure, the funds target advanced technology, industry, and the energy sector.
Corporate partnerships matched the state-level ambition. German and Emirati companies signed 29 separate agreements during the visit, carrying a combined value of 9.4 billion euros. These pacts span data hosting, emerging technology, digitalisation, climate, transport, environment, culture, and education.
Institutional Frameworks and Aviation Access
Beyond pure capital investment, the governments established formal mechanisms to ensure long-term collaboration. The two nations signed a declaration of intent to form a joint investment council aimed at advancing investment and strengthening public- and private-sector ties, alongside the launch of a formal Strategic Dialogue.
The diplomatic push also unlocked commercial access.
Geopolitical Realignment and Regional Security Debates
The state visit unfolded against a backdrop of shifting international alliances. Paul Musgrave, associate professor of government at Georgetown University in Qatar, noted that Gulf states like the UAE are actively seeking to diversify their overseas portfolios beyond oil and develop an economy that moves beyond oil.
This economic diversification coincides with security imperatives. Chancellor Friedrich Merz noted earlier that Germany and midsize powers require robust partnerships at a time when major powers increasingly dominate global politics.
In a joint declaration, the leaders addressed pressing regional security concerns. They condemned Iranian attacks on civilian infrastructure in the UAE and other regional states, denounced the de facto closure of the Strait of Hormuz, and called for preventing Tehran from acquiring nuclear weapons.
