Germany and UAE Renew Strategic Partnership with €40 Billion Investment Boost

Germany and the United Arab Emirates (UAE) have embarked on revitalizing their strategic partnership during the historic first state visit of a UAE president to Germany. Chancellor Friedrich Merz and UAE President Mohammed bin Sajid met in Berlin to reaffirm cooperation spanning over two decades, aiming to deepen ties in areas such as international security, defense, trade, energy, climate, digital technologies, business, transport, environment, culture, and education.

The UAE pledged a substantial new investment of €40 billion in Germany, more than doubling its previous investment portfolio valued at around €34 billion. This announcement was accompanied by the signing of 29 business agreements between German and Emirati companies, collectively worth nearly €9.4 billion. The agreements highlight a focus on digital infrastructure development—such as data centers with about one gigawatt capacity—and artificial intelligence, positioning Germany as a center for innovation while providing the UAE access to broader markets in the Gulf, Asia, and Africa.

To enhance coordination and promote further business activities, a German-Emirati investment council will be created to facilitate collaboration between governments and enterprises of both nations. Additionally, Emirates airlines will gain rights to operate flights to a fifth German airport—Berlin Brandenburg Airport (BER)—with up to seven direct flights weekly, strengthening transport and connectivity.

Last year, bilateral trade between Germany and the UAE amounted to approximately €13 billion, with German exports constituting €11 billion of that figure.

Despite these advancements, human rights organizations have voiced criticism of the closer partnership, raising concerns about the UAE's involvement in regional conflicts, leading to protests in Berlin.

German President Frank-Walter Steinmeier formally welcomed President Mohammed bin Sajid to mark this milestone visit, highlighting the commitment to a multifaceted partnership moving forward.