The United Arab Emirates plans to invest 40 billion euros ($46.4 billion) in Germany, with data center infrastructure and AI forming key parts of the investment. The two countries also aim to deepen defense cooperation.
The investment was announced during a state visit to Germany by UAE President Sheikh Mohamed bin Zayed Al Nahyan, who met with German Chancellor Friedrich Merz. The package includes roughly 1 gigawatt of new data-center capacity, with 10 billion euros reportedly earmarked for investment in Bavaria, a major hub for Germany's industrial and tech sectors.
The two countries also signed a declaration of intent to form an investment council aimed at advancing investment and strengthening public- and private-sector ties. The UAE, like all Gulf countries, is keen to diversify its overseas portfolio and develop an economy that moves beyond oil, said Paul Musgrave, associate professor of government at Georgetown University in Qatar.
Germany is in a bit of an economic doldrums right now, it needs to have something that Chancellor Merz can deliver as a win.
The UAE is a key trading partner for Germany in the Gulf region. Bilateral non-oil trade reached $15.5 billion in 2025, the two countries said in a joint declaration. The UAE has already invested about 34 billion euros in Germany, Europe's largest economy, including in its chemicals and renewable energy sectors.
The UAE is very keen to connect its economy, trade and investments with economic hubs around the world, the UAE's Minister of Foreign Trade Thani Al Zeyoudi told Bloomberg TV in Berlin.
