UAE and Germany deepen trade ties by signing 29 new business agreements during state visit
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Khaleej Times
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UAE and Germany deepen trade ties by signing 29 new business agreements during state visit

UAE President Sheikh Mohammed bin Zayed Al Nahyan visited Germany from September 9 to 11, 2026, at the invitation of President Frank-Walter Steinmeier. During this first state visit of the UAE President to Germany, Sheikh Mohammed bin Zayed Al Nahyan also met with Federal Chancellor Friedrich Merz.

The leaders acknowledged that the visit takes place at a decisive moment for both countries and for the broader international order. Against the backdrop of increasing regional and geopolitical instability, both sides emphasized the growing importance of reliable, like-minded partners and reaffirmed their determination to stand together in defense of the international order.

The state visit once again highlighted that the partnership between Germany and the UAE is based on a shared commitment to peace, security, economic prosperity, development, and the use of future technologies, as well as sustainable development.

Format of Strategic Dialogue

During the visit, Sheikh Mohammed bin Zayed Al Nahyan and Federal Chancellor Friedrich Merz announced the creation of a Strategic Dialogue format, intended to revive the Comprehensive Strategic Partnership established in 2004. This Dialogue will guide the progress of deepened cooperation across various sectors, including international and regional security, defense, trade and investment, energy and climate, new technologies, digitalization, economy, transport, environment, culture, and education, ensuring the achievement of concrete mutual benefits.

They confirmed that the Strategic Dialogue represents a long-term investment in relations, providing a framework for realizing this vision into sustainable and concrete cooperation. Both sides affirmed their readiness to strengthen bilateral trade and investment ties and expand cooperation in priority areas.

As a concrete expression of this commitment, Sheikh Mohammed bin Zayed Al Nahyan and Federal Chancellor Friedrich Merz welcomed the signing of a Joint Declaration of Intent (JDoI) to establish the German-UAE Investment Council as a platform to promote investment and strengthen interaction between the public and private sectors.

Furthermore, they positively assessed the results of the UAE-Germany Business Forum and the resumption of the Joint Economic Committee, emphasizing their support for closer economic cooperation, investment, and joint projects.

In particular, both leaders welcomed the signing of 29 Memoranda of Understanding and agreements between UAE and German companies totaling over 9.356 billion euros, reflecting the growing depth of private sector cooperation between the two countries.

The leaders also approved the announcement of a 40 billion euro UAE investment package in Germany, demonstrating both countries' common goal of deepening strategic partnership and the UAE's confidence in Germany as a leading destination for investment, innovation, and industrial growth. This package is expected to contribute to strengthening industrial competitiveness, developing technological leadership, and supporting long-term economic growth in Germany. The package includes investments in advanced digital infrastructure, including the development of new modern data centers with a capacity of about 1 GW. Germany emphasized its commitment to creating a favorable environment for their implementation.

In addition to the 40 billion euro package, the leaders welcomed plans for further corporate investments and partnerships between UAE and German companies, including initiatives involving Covestro, RWE, Adnoc, and Masdar. These initiatives are built upon the solid foundation of existing UAE investments in Germany, including XRG's investment in Covestro worth approximately 15 billion euros, and underscore the growing depth and ambition of economic relations between the two states.

Both sides noted the continued growth of bilateral non-resource trade, which reached $15.5 billion in 2025, a 14% increase compared to 2024, while the total volume of investment flows between the countries exceeded $10 billion during the 2021-2025 period. They also welcomed progress in negotiations for a comprehensive economic partnership agreement between the UAE and the EU. The UAE is currently negotiating with the EU, the world's largest internal market, on the terms of a Free Trade Agreement (FTA). Germany and the UAE support the achievement of a comprehensive, commercially ambitious agreement. Strengthening bilateral trade relations between the EU and the UAE through a comprehensive and ambitious FTA will bring economic benefits to both parties.

Both sides affirmed that enhancing cooperation in defense and defense technologies is a key pillar of the relationship, and highly praised the signing of a Letter of Intent (LoI) regarding the study of defense cooperation, supported by a high-level defense round table, as well as the signing of an LoI on police and security cooperation. They agreed to move this cooperation beyond the dynamic of supplier and recipient to a broader, strategic partnership.

The leaders reaffirmed their deep and strong partnership in the energy sector, built on trust and a shared commitment to strengthening energy security and system resilience. Based on the UAE-Germany Energy Partnership, both sides welcomed the continuation of cooperation in the energy sector and agreed to intensify efforts to ensure safe, diversified, and affordable energy supplies for the UAE and Europe.

The leaders welcomed the expansion of strategic, long-term cooperation across the entire energy value chain, covering traditional and new energy sources, including LNG, renewables, and hydrogen. They were pleased to note the growing contribution of bilateral flagship projects involving leading UAE and German companies, which strengthens supply security and system resilience, and supports industrial competitiveness.

Both sides welcomed the current development of the Global Energy Efficiency Alliance (GEEA) and reaffirmed their commitment to strengthening international cooperation in energy efficiency as a key factor in the global energy transition. Furthermore, as founders of the International Renewable Energy Agency (IRENA), both sides affirmed the importance of the Agency's role in promoting the global energy transition and welcomed further close cooperation.

Germany also welcomed the UAE's leadership in advancing efforts to reduce methane emissions from the oil and gas sector and its leadership in launching the Oil and Gas Decarbonization Charter (OGDC) at COP28. In the field of critical technologies, both sides affirmed their commitment to expanding cooperation in artificial intelligence and new technologies, fostering exchange, investment, research, and development, including joint development in these critical sectors.

To account for the UAE's leading role in advanced technologies, Sheikh Mohammed bin Zayed Al Nahyan and Federal Chancellor Friedrich Merz welcomed the Joint Declaration of Intent (JDoI) on studying cooperation in data hosting and information systems through the creation of data embassies. This cooperation will explore a new model of technological diplomacy through secure and sustainable digital infrastructure and strengthen the foundations of trusted digital cooperation between the two countries.

Water Resources Conference

The leaders highly valued the preparation for the UN Water Conference in 2026, which will be jointly held by the UAE and Senegal in Abu Dhabi from December 8 to 10, 2026. They emphasized the conference's role in strengthening partnerships, mobilizing investments, and promoting innovative, practical, and scalable solutions, as well as its importance in stimulating global water action and progress towards Sustainable Development Goal 6.

Environmental Cooperation

Both sides also welcomed the signing of a Joint Declaration of Intent (JDoI) on environmental cooperation. The UAE and Germany have strong and long-standing relationships in civil aviation, supported by significant air connectivity and growing economic, trade, tourism, and intercultural ties. Building on these relationships, the German side agreed to add a fifth additional point to the route schedule, allowing one UAE national airline to operate a coordinated number of frequencies to a fifth point, in addition to four existing points in Germany, with the frequency limit for this airline being restricted to the current level.

Both sides welcomed the signing of a number of additional agreements on the occasion of the visit, including simplifying entry for UAE citizens into German airports through the EasyPASS system and an Agreement on Mutual Legal Assistance in Criminal Matters, and looked forward to the swift completion of remaining documents in the negotiation process, including a double taxation avoidance agreement.

Both sides exchanged views on key regional and international events. Recognizing the readiness to contribute to peace, stability, and security in the Middle East, the leaders stressed the necessity of diplomacy and dialogue. The UAE President expressed sincere gratitude to Germany for its firm support and solidarity in the face of Iranian aggression against the UAE, noting it as a reflection of the strong friendship and strategic partnership between the two nations. The Federal Chancellor expressed Germany's firm position of solidarity with the UAE and other regional partners.

Both leaders strongly condemned Iran's blatant attacks on the UAE and other regional states, including attacks on civilian infrastructure, which constitute a clear violation of their sovereignty and territorial integrity, as well as a gross violation of international law, including the UN Charter. The leaders also condemned Iran's closure of the Strait of Hormuz and its threats and attacks on commercial vessels, emphasizing the critical importance of adhering to international law, including the right of transit passage, in international waters, referencing UN Security Council Resolution 2817 (2026). In this regard, the leaders demanded that Iran refrain from any actions or threats aimed at closing, obstructing, or otherwise impeding the right of transit passage through the Strait of Hormuz or against commercial vessels in and around the Strait of Hormuz, citing the decisions and outcomes of the International Maritime Organization's Council and committees. They also reiterated the need to prevent Iran from acquiring nuclear weapons and resolving its broader threats, including its missile and drone programs, as well as support for regional proxies.

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UAE invests 40 billion euros in Germany to strengthen long-term economic partnership
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www.khaleejtimes.com

UAE invests 40 billion euros in Germany to strengthen long-term economic partnership

The United Arab Emirates (UAE) has announced plans to invest 40 billion euros (equivalent to 170 billion dirhams) in Germany. These funds will be directed into various sectors that are priorities from both a strategic and developmental perspective for both countries.

Priority areas include industry, advanced technologies, artificial intelligence, digital infrastructure, and energy. This announcement is part of a growing momentum in relations between the UAE and Germany and coincides with the state visit of UAE President Sheikh Mohammed bin Zayed Al Nahyan to Germany.

The investments reflect the UAE's approach to developing long-term economic and investment ties, as well as confidence in Germany's industrial, technological, and innovative capabilities. Of the total amount of 40 billion euros, 10 billion euros will be allocated to investments in the German federal state of Bavaria.

This investment marks a significant expansion of economic cooperation between the UAE and Germany, combining Germany's advanced industrial, technological, and research capabilities with the UAE's experience and potential in investment to support and accelerate the growth of major projects.

This initiative will create new opportunities for companies and institutions of both countries to establish strong partnerships and deepen interaction in sectors expected to stimulate growth and competitiveness in the coming decades. Closer cooperation with Germany will allow the UAE to expand its investment presence in one of Europe's leading industrial and technological economies, utilizing German expertise in areas that support the UAE's knowledge and innovation-based economy.

In addition to the financial component, these investments lay the foundation for a strategic partnership that combines the UAE's investment experience with Germany's industrial, technological, and innovative strengths, thereby strengthening the role of both countries as partners in shaping future industries and supporting sustainable economic growth. The investments will also serve as a platform for more active exchange of knowledge, skills, and experience between the two states, promoting their common economic interests and supporting future technologies.

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