BERLIN, Sept 10 (Reuters) – The United Arab Emirates has pledged to invest €40 billion in Germany to support its industry, following a meeting between the countries’ leaders on Thursday to strengthen ties amid economic uncertainty and conflict.
UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz said the UAE leader’s state visit to Germany came at a “defining moment for both countries and for the wider international order.”
“Amid heightened regional and geopolitical volatility, both sides underscored the growing importance of reliable, like-minded partners, and affirmed their determination to stand together in defence of the international order,” a joint declaration said.
The €40-billion ($46.48 billion) sum is on top of the UAE’s existing investment in Germany worth €34 billion.
“Germany has been an important strategic and economic partner for decades,” said Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber, who is also envoy of the minister of foreign affairs to Germany. The new tranche of investment signals the UAE’s ambition “to invest in that relationship for the years ahead”, he added.
The package is intended to strengthen Germany’s industrial competitiveness and support the long-term economic growth of Europe’s largest economy.
It includes investments in digital infrastructure, such as the development of new data centres with a capacity of approximately 1 gigawatt. Germany is committed to “fostering a favourable environment for their implementation”, the two sides said.
The countries intend to boost cooperation across a broad range of areas, including security, defence, trade and energy.
Merz and Sheikh Mohamed also welcomed the signing of 29 agreements between UAE and German companies, exceeding a total value of €9.4 billion, with further corporate investments planned.
Germany has agreed to additional traffic rights for UAE airline Emirates, allowing it to operate a regular service from Berlin to Dubai. The state of Brandenburg, where the Berlin airport is located, welcomed the move but German competitor Lufthansa criticized it.
Merz visited the Gulf region in February, as Berlin looks to deepen energy and defence partnerships and reduce its dependence on the U.S. and China.
In the joint declaration, the leaders reiterated their positions on conflicts in the Middle East and Ukraine, including a condemnation of Iran’s attacks in the region and disruptions to trade in the Strait of Hormuz.
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