UAE Announces €40 Billion Investment Boost in Germany During Historic 2026 State Visit

During the first-ever state visit by a United Arab Emirates (UAE) president to Germany, the UAE announced a major new investment commitment of 40 billion euros, more than doubling its previous investments in the country from approximately 34 billion euros to around 74 billion euros. This announcement was made by UAE President Sheikh Mohammed bin Zayed Al Nahyan and German Chancellor Friedrich Merz, following extensive bilateral talks in Berlin that emphasized strengthening economic and strategic cooperation.

The investment package focuses on sectors critical to future growth, including digital infrastructure, energy supply, and advanced technology industries such as artificial intelligence and defense. A key infrastructure element is the development of modern data centers with an approximate capacity of one gigawatt. Businesses from both countries signed 29 memorandums of understanding and agreements totaling nearly 9.4 billion euros, reflecting broad cooperation across energy, technology, and industrial competitiveness.

To further deepen long-term partnership, Germany and the UAE agreed to establish a German-Emirati investment council aimed at enhancing investment promotion and dialogue between public and private sectors. Additionally, the UAE will expand air traffic rights with Germany, allowing Emirates Airline to service an additional German city. Trade relations are robust, with bilateral trade reaching over 13 billion euros last year, mostly favoring German exports.

Beyond economics, the leaders addressed pressing security concerns. Both condemned recent Iranian attacks on the UAE and regional states, criticizing threats to maritime trade routes such as the Strait of Hormuz. On the Middle East conflict, both highlighted their support for a two-state solution and called for the disarmament of Hamas and Israeli troop withdrawal from Gaza. The UAE’s role in facilitating prisoner exchanges in the Ukraine conflict was also recognized, with plans for joint humanitarian aid this winter focused on Ukraine’s food security.

German President Frank-Walter Steinmeier welcomed Sheikh Mohammed with military honors, underscoring the significance of the visit and the strategic partnership. Chancellor Merz and Sheikh Mohammed pledged to elevate ties in security, defense, climate, culture, and transport, signaling a multifaceted alliance amid increasing global uncertainties.

The state visit is viewed as pivotal for shaping a future-oriented, resilient economic and security partnership between Germany and the UAE.