UAE pledges $46.5 billion investment in Germany across AI, tech and energy

The United Arab Emirates has pledged to invest 40 billion euros ($46.5 billion) in Germany, targeting sectors including artificial intelligence, data centers, advanced technology and energy as the two countries seek to deepen economic ties.

The investment was announced on Thursday during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, where he met Chancellor Friedrich Merz.

The new commitment comes on top of around 34 billion euros ($39.45 billion) that the UAE has already invested in Germany and marks a significant step forward in a long-term economic partnership that is expected to drive growth and competitiveness over the coming decades.

Of the planned investment, 10 billion euros (11.60 billion) will be allocated to projects in Bavaria, one of Germany’s major industrial and technology centers, reflecting the UAE’s confidence in Germany’s industrial, technological and innovation capabilities.

A key area of the investment will be in data infrastructure. The two countries plan to support the development of new data centers with about 1 gigawatt of capacity, with Germany agreeing to create conditions to facilitate their implementation, according to officials.

The push comes as demand for computing power rises with the expansion of artificial intelligence. The investment will also target energy infrastructure, including renewable energy, hydrogen and energy efficiency.

The two countries intend to establish a dedicated framework for technology cooperation, bringing together researchers, investors and companies to support innovation, develop new technologies and create commercial opportunities between the two countries.

For the UAE, closer cooperation with Germany provides access to advanced industrial, engineering and research capabilities that could support its efforts to build a more knowledge- and technology-driven economy. For Germany, the partnership brings additional UAE capital for technology and infrastructure projects.

The two countries welcomed 29 agreements between UAE and German companies worth more than 9.4 billion euros ($10.91 billion), with further corporate investments planned.

The investment comes as Germany seeks to strengthen its industrial base, secure energy supplies and broaden its international partnerships. Chancellor Friedrich Merz visited the Gulf region in February as Berlin sought to deepen energy and defense ties.

The UAE and Germany have longstanding economic ties, with bilateral trade, excluding oil, worth about 13.35 billion euros ($15.5 billion) a year. The two countries have also agreed to expand cooperation in security, defense, trade and energy, laying the groundwork for a broader phase of economic and strategic cooperation.