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UAE Pledges €40 Billion Investment to Boost German Industry

Prime Highlights-

  • The UAE pledged €40 billion in new investment to strengthen Germany’s industrial competitiveness and support long-term growth.
  • UAE and German companies signed 29 agreements worth more than €9.4 billion, with more investment planned.

Key Facts-

  • The new investment builds on the UAE’s existing €34 billion stake in Germany.
  • Emirates gained approval to launch a regular Berlin to Dubai service.

Background-

The United Arab Emirates has agreed to invest €40 billion to strengthen Germany’s industrial base, a commitment made after talks between the two countries’ leaders on deepening economic and strategic cooperation.

UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz described the state visit as a defining moment for both nations and the broader international order.

Both sides pointed to the growing value of reliable partnerships amid regional and geopolitical uncertainty and affirmed their shared commitment to supporting international stability.

The new €40 billion, worth about $46.48 billion, adds to the UAE’s existing €34 billion investment in Germany. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, called Germany a longstanding strategic and economic partner, saying the new investment reflects the UAE’s ambition to build on that relationship for years to come.

The package aims to strengthen Germany’s industrial competitiveness and support long-term growth across Europe’s largest economy. It includes investment in digital infrastructure, including new data centres with a combined capacity of around 1 gigawatt, with Germany pledging supportive conditions for their development.

Merz and Sheikh Mohamed also welcomed 29 agreements signed between UAE and German companies, together worth more than €9.4 billion, with additional corporate investments in the pipeline.

Germany granted new traffic rights allowing Emirates to launch a regular Berlin to Dubai service. Brandenburg, home to Berlin’s airport, welcomed the decision, while competitor Lufthansa raised objections.