German Chancellor Friedrich Merz (right) meets with UAE President Sheikh Mohammed bin Zayed Al Nahyan at the Chancellery in Berlin on September 10, 2026. (Photo by: RALF HIRSCHBERGER/AFP via Getty Images)
Ralph Hirschberger | AFP | Getty Images
The United Arab Emirates plans to invest 40 billion euros ($46.4 billion) in Germany as the two countries deepen economic ties, with data center infrastructure a key part of the investment.
The investment was announced during UAE President Sheikh Mohammed bin Zayed Al Nahyan’s meeting with German Chancellor Friedrich Merz during his state visit to Germany this week.
This spans areas such as artificial intelligence, digital infrastructure, and energy. The two countries also announced plans to deepen defense cooperation.
The package will reportedly include approximately 1 gigawatt of new data center capacity and allocate €10 billion for investment in Bavaria, Germany’s main industrial and technology hub.
The two countries also signed a declaration of intent to establish an investment council to promote investment and strengthen public-private partnerships.
Paul Musgrave, associate professor of government at Georgetown University in Qatar, said the UAE, like other Gulf states, is keen to diversify its overseas portfolio and develop an economy beyond oil.
“Abu Dhabi is also looking at the possibility of making certain investments in supply chains, certain investments in companies, and using this for strategic purposes, including, of course, cultivating new friends and influence in Europe and ensuring strong ties with the economy and the military-industrial sector, which is one of the world’s biggest competitors in that area,” Musgrave told CNBC’s “Access Middle East” on Friday.
“For Germany, this is something that will really help, because Germany is currently in a bit of a downturn economically. We need something that Chancellor Merz can bring about a win.”
The UAE is Germany’s main trading partner in the Gulf region. The two countries announced in a joint declaration Thursday that bilateral non-oil trade will reach $15.5 billion in 2025. The UAE has already invested approximately 34 billion euros in Germany, Europe’s largest economy, in fields such as chemicals and renewable energy.
The UAE is “very keen” to connect its economy, trade and investment with economic hubs around the world, Thani Al Zeyoudi, UAE Minister of Foreign Trade, told Bloomberg TV in Berlin on Thursday.
