UAE Pledges 40 Billion Euros for Investments in German Technology and Infrastructure

NewsDesk
By
NewsDesk
Industry Gulf NewsDesk is the desk responsible for Industry Gulf's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news...
3 Min Read
UAE pledges €40bn for German tech infrastructure | AI-Generated Image

A joint declaration issued after the high-level talks in Berlin detailed the UAE’s commitment to investing 40 billion euros in advanced digital infrastructure, including new data centres with approximately one gigawatt of capacity, alongside projects in industry, advanced technology and energy. The announcement coincided with the signing of 29 business-to-business memoranda of understanding and agreements between UAE and German companies valued at more than 9.3 billion euros. Chancellor Merz described the package as a powerful signal showing enormous international investor confidence in Germany as a location for investment and innovation, the German government reported.

Bilateral non-oil trade reached 15.5 billion dollars in 2025, an increase of more than 14 percent from 2024, according to figures in the joint declaration. Cumulative investment flows between the two countries exceeded 10 billion dollars in the 2021-2025 period. The declaration noted that the new package builds on existing UAE investments in Germany, which total around 34 billion euros and include ADNOC-owned XRG’s roughly 15 billion euro stake in chemicals producer Covestro.

The two leaders agreed to create a German-Emirati Investment Council to promote further investment flows and joint projects. Nearly one quarter of the 40 billion euro package is slated for Bavaria in southern Germany, a hub for industry and technology. The declaration welcomed the resumption of the Joint Economic Committee and outcomes from a bilateral business forum as signs of strengthening private sector cooperation.

UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi said in remarks reported by multiple outlets that global supply chain disruptions had made the investment particularly timely. He identified energy, technology with a focus on data centres, and logistics as the three main areas for expanded collaboration. Al Zeyoudi added that the UAE would bring capital and access to markets in the Middle East, Asia and Africa while drawing on German industrial expertise.

The initiatives give fresh impetus to the strategic partnership the two countries established in April 2004, with plans to expand cooperation in foreign policy, the economy, energy and the environment. More than 2,000 German companies maintain operations in the UAE, which serves as a regional base for firms including Siemens, BMW, Mercedes-Benz and Deutsche Bahn. The joint declaration highlighted the UAE as Germany’s largest trading partner in the Gulf region.

German authorities granted additional traffic rights to Emirates airline, permitting regular services between Berlin Brandenburg Airport and Dubai. The leaders also addressed efforts to advance the UAE-European Union comprehensive economic partnership agreement during the visit. Both sides discussed promoting peace and stability in the Middle East as part of their broader dialogue.

Share This Article
Industry Gulf NewsDesk is the desk responsible for Industry Gulf's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.