The United Arab Emirates has announced plans to invest €40 billion ($46.5 billion) in Germany as the two countries seek to deepen economic ties across technology, energy, defense and trade. The package includes new digital infrastructure, including about 1 gigawatt of planned data center capacity, while both countries also plan to establish an investment council to support future projects.
The United Arab Emirates plans to invest €40 billion in Germany as part of an effort to strengthen economic cooperation with Europe's largest economy, following talks between UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz. The planned investment comes on top of about €34 billion the UAE already has invested in Germany, according to the two countries.
The investment package is intended to support Germany's industrial competitiveness and long-term economic growth. One of its key components is digital infrastructure, including the development of new data centers with approximately 1 gigawatt of capacity.
Germany has committed to creating a favorable environment for the data center projects, according to a joint declaration issued by the two countries. The planned infrastructure reflects growing investment in computing capacity as demand for artificial intelligence and other digital services increases.
Beyond technology, the UAE and Germany intend to expand cooperation in areas including energy, trade, security and defense. Reuters reported that the two countries are also working to deepen cooperation in renewable energy and other strategic sectors as Germany seeks to strengthen economic and energy partnerships amid geopolitical uncertainty.
The two governments also plan to establish a German-UAE investment council aimed at encouraging additional investment between the countries and supporting closer business ties.
The announcement was accompanied by a series of corporate agreements. According to Reuters, 29 agreements worth more than €9.4 billion were signed between UAE and German companies, with additional corporate investments expected.
The UAE's planned investment comes as Germany seeks to diversify its economic partnerships and strengthen access to energy and strategic resources. German Chancellor Friedrich Merz previously traveled to the Gulf as Berlin sought closer relationships in areas including energy and defense.
The two countries also agreed to expand traffic rights for UAE-based airline Emirates, allowing it to operate regular flights between Berlin and Dubai. The move was welcomed by the German state of Brandenburg but criticized by Lufthansa.
The €40 billion announcement represents a significant planned expansion of UAE capital commitments in Germany, although the investment package is a forward-looking commitment rather than an indication that the entire amount has already been deployed.
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