UAE invests €40 billion in Germany on president's first state visit

The United Arab Emirates plans to invest €40 billion ($46.5 billion) in Germany, both sides announced during a state visit by President Mohammed bin Zayed al Nahyan to Berlin on Thursday.

The sum more than doubles the Gulf state's investment in the German economy so far, from the previous €34 billion.

Mohammed began a two-day state visit to Germany earlier on Thursday and was welcomed in Berlin by President Frank-Walter Steinmeier with full military honours. He later met Chancellor Friedrich Merz.

Both sides had previously said they planned to deepen relations.

The Emirati technology minister, Sultan Ahmed Al Jaber, said that Germany had been "an important strategic and economic partner" for his country for decades.

The planned additional investments "will promote those industrial sectors, technologies and skilled jobs that drive future growth and competitiveness," he said.

UAE is Germany's most important trading partner in Gulf

A further 29 deals between German and Emirati companies were inked during the visit, worth almost €9.4 billion.

Berlin and Dubai are setting up a German-Emirati Investment Council to promote investment and strengthen dialogue between the public and private sectors.

They also plan to expand cooperation in artificial intelligence and new technologies.

"The package is expected to contribute to strengthening industrial competitiveness, advancing technological leadership and supporting long-term economic growth in Germany," the statement said.

It spans investments in advanced digital infrastructure, including the development of new state-of-the-art data centres with a capacity of approximately 1 gigawatt.

The two sides also "welcomed plans for further corporate investments and partnerships between UAE and German companies, including initiatives involving Covestro, RWE, ADNOC and Masdar."

The Emirates plan joint investments with leading German industrial and technology companies. They would deepen the UAE's expertise in strategic sectors and enable the establishment of companies capable of serving growth markets in the Gulf region, Asia and Africa.

"The world has become a more turbulent place; old certainties are crumbling," Steinmeier said at a state banquet held in honour of Mohamed, who is the first UAE president to ever pay a state visit to Germany.

The desire on both sides to strengthen bilateral relations is also a response to new geopolitical tensions including the war on Iran, which has heavily affected the Gulf countries.