UAE Announces €40 Billion Investment Plan for Germany, Focused on Digital Infrastructure
The United Arab Emirates has announced plans to invest 40 billion euros ($46.4 billion) in Germany during a state visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz. The investment will focus on digital infrastructure, including the development of approximately 1 gigawatt of new data center capacity, as well as artificial intelligence and energy sectors. The two countries also plan to establish a German-UAE Investment Council aimed at encouraging further collaboration between public and private sectors. A significant portion—10 billion euros—is earmarked for Bavaria, an industrial and tech hub in Germany. The investment is expected to strengthen economic ties while diversifying the UAE’s global portfolio beyond oil. Germany currently faces economic stagnation, making this deal a potential win for Chancellor Merz. Bilateral non-oil trade between the two countries reached $15.5 billion in 2025, and the UAE has already invested around €34 billion in Germany's chemicals and renewable energy sectors.
Topics: Data Centers Digital Infrastructure Economic Cooperation Germany Investment UAE