Full Breakdown
UAE Pledges €40 billion Investment in Germany Amid Geopolitical Tension
By Drooid · · How we work
Core Investment Announcement
On September 10 2026, UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz announced a €40 billion investment package for Germany, adding to the UAE’s existing €34 billion portfolio. The funds target digital infrastructure (about 1 GW of new data-center capacity), artificial intelligence, energy and advanced manufacturing, with €10 billion earmarked for Bavaria. The leaders also signed 29 agreements valued at over €9.35 billion, covering renewable energy to defence.
Background & Context
The announcement came during the UAE’s first state visit to Germany since 2019, amid regional volatility and supply-chain uncertainties. The UAE seeks to diversify beyond oil, while Germany aims to lessen reliance on the United States and China for strategic technologies. Non-oil trade between the two economies is about $15.5 billion annually.
Data & Statistics
| Metric | Figure |
|---|---|
| New investment pledge | €40 billion |
| Existing UAE investment in Germany | €34 billion |
| Data-center capacity | ? 1 GW |
| Bavaria allocation | €10 billion |
| Signed agreements | 29, > €9.35 billion value |
| Annual non-oil trade | ? $15.5 billion |
| German companies in the UAE | 7,685 (May 2026) |
Official Statements & Responses
- The joint declaration called the visit a “defining moment” for both nations and the “wider international order,” stressing the need for “reliable, like-minded partners.”
- Chancellor Merz described the pledge as a “powerful signal” for jobs, competitiveness and innovation.
Verbatim Quotes
- “Germany has been an important strategic and economic partner for decades,” — German Federal Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber
- “At a time when the international order is under strain, partnerships like that between the UAE and Germany are essential,” — Lana Nusseibeh, former UAE ambassador to the UN
Conflicting Reports & Gaps
Sources differ on the total value of the signed agreements: Reuters cites €9.35 billion, CNBC €9.4 billion, and Finimize €9.36 billion. No detailed sector-by-sector breakdown of the €40 billion allocation has been released.
What’s Next
- Establishment of a UAE-German Investment Council to oversee projects.
- A Strategic Dialogue framework for cooperation on security, trade, energy, climate and emerging technologies.
- A signing ceremony on September 9 2026 will formalize additional AI and energy deals.
- Germany has granted extra traffic rights for a regular Berlin-Dubai service, pending implementation.
