The United Arab Emirates (UAE) has pledged to invest 40 billion euro in Germany to support its industry, following a meeting between the countries’ leaders on Thursday (September 10) to strengthen ties amid the ongoing geopolitical uncertainties.
As UAE President Sheikh Mohamed bin Zayed Al Nahyan visited the European giant, German Chancellor Friedrich Merz said the Gulf leader’s state visit 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 stated.
The 40-billion-euro (USD 46.48 billion) sum will complement the UAE’s existing investment in Germany worth 34 billion euro.
“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 the 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 further.
According to the Emirati delegation, the package aims to enhance Germany’s industrial competitiveness and promote the nation’s long-term economic growth.
“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 joint declaration further noted.
The countries are also eyeing boosting 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 euro, with further corporate investments planned.
Germany has agreed to additional traffic rights for UAE’s flagship airline Emirates, allowing the entity to operate a regular service from Berlin to Dubai.
The UAE President’s German visit followed up on similar action by Merz, when the latter toured the Gulf region in February.
Berlin is now looking to the Middle East to deepen its energy and defence partnerships while reducing its dependence on the United States and China.
Image Credit: mohamedbinzayed.ae