UAE to invest €40 billion in Germany amid slew of business deals

UAE Commits €40 Billion to Germany, Signing Major Business and Industry Deals

Strengthening UAE-Germany Economic and Strategic Relations

Historic Investment Announcement

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.

Leadership Statements and Diplomatic Context

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.

Investment Figures and Strategic Intent

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.

Economic Impact and Industrial Growth

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.

Expanding Bilateral Cooperation

The countries intend to boost cooperation across a broad range of areas, including security, defence, trade and energy.

Major Agreements and Corporate Investments

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.

Transport and Aviation Developments

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.

Energy and Defence Partnerships

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.

Geopolitical Context and Security Cooperation

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.

Additional Information

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(Reporting by Siddarth S in Dubai and Rachel More in Berlin; editing by Alison Williams and Rod Nickel)