UAE and Germany Forge a Strategic Investment Partnership

Adnoc, its investment platform XRG and renewable-energy company Masdar have announced a series of agreements with German companies during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany. The agreements span liquefied natural gas (LNG), renewable energy, advanced materials, artificial intelligence and other technologies, and could enable more than €5 billion in investment, according to Adnoc. The deals are intended to deepen the UAE-Germany strategic partnership and build on more than five decades of bilateral co-operation. They follow the UAE’s announcement of €40 billion in intended long-term investments in Germany. Adnoc, XRG and Masdar said they have already invested more than €20 billion in Germany’s energy and industrial sectors. Adnoc and RWE Supply & Trading signed a letter of intent to pursue up to two long-term LNG sales agreements. Supplies from Adnoc Gas and XRG’s expanding portfolio could begin in the early 2030s and potentially serve customers in Germany, elsewhere in Europe and Asia. Adnoc, XRG and Germany’s SEFE also agreed to explore collaboration across natural-gas and LNG supply chains, including supply, infrastructure and logistics. In the chemicals sector, TA’ZIZ and Covestro will conduct a feasibility study for a large-scale methylene diphenyl diisocyanate production chain in Ruwais. Masdar and RWE will examine joint participation in future German offshore-wind auctions, while Masdar and investment manager Luxcara will consider investments in offshore-wind and battery-storage projects in Germany and Europe. Separate agreements with Bosch Middle East, Siemens Energy and Siemens Industrial will explore artificial intelligence and advanced technology. The announcements coincided with the launch of the UAE-Germany Investment Council, which will seek opportunities in priority sectors.

The UAE’s decision to invest €40 billion ($46.47 billion) in Germany was strongly influenced by recent disruptions to global supply chains, energy supplies and technological development, according to Dr Thani Al Zeyoudi, the UAE’s Minister of Foreign Trade. The investment was announced during President Sheikh Mohamed’s state visit to Germany and will cover industry, advanced technology, artificial intelligence, digital infrastructure and energy. Of the total, €10 billion will be directed to projects in Bavaria. Al Zeyoudi described the UAE-Germany relationship as a strategic partnership between two complementary economies. Germany offers industrial expertise, technology, talent and access to advanced capabilities, while the UAE contributes investment capital, logistics expertise and access to markets in the Middle East, Asia and Africa. The minister identified energy, technology and data centres, and logistics as the leading areas for future cooperation. The announcement comes amid continuing global supply-chain uncertainty and disruptions to commercial shipping in the Strait of Hormuz following the outbreak of the Iran war in late February. Al Zeyoudi said strengthening international partnerships was therefore critical for the UAE, with Germany representing one of its most important economic partners in Europe. Some projects are reportedly close to implementation and could produce immediate results, while others will take longer. The investments are intended to create long-term partnerships between Emirati and German businesses rather than function as conventional financial transactions. German technology is expected to be deployed in the UAE, while UAE-backed projects and partnerships will expand in Germany. A new UAE-Germany Investment Council will monitor the agreements, establish follow-up mechanisms and help move major projects from announcement to implementation. Further details will be released as feasibility studies are completed. Al Zeyoudi said the partnership should ultimately be judged by the value it creates for people in both countries and their wider regions, rather than by which side benefits more in any individual area.

The article examines the deepening partnership between the United Arab Emirates and Germany, arguing that their relationship has evolved far beyond a traditional energy-based connection. Although the two countries are geographically distant, their ties extend back more than a century, symbolized by a 1904 photograph of Sheikh Zayed bin Khalifa Al Nahyan taken by German photographer Hermann Burchardt. More recently, over 50 years of diplomatic relations have produced strong links in education, culture, archaeology and research, including the presence of German schools and the Goethe-Institut in the UAE. The article emphasizes that current geopolitical and economic uncertainty is creating both challenges and opportunities. Germany needs energy security, but also benefits from UAE investment, technology, resilient supply chains and access to new markets. Bilateral trade exceeded $15.5 billion in the previous year, approximately 2,000 German companies operate in the UAE, and UAE investment is supporting Germany’s energy transition. Examples include Masdar’s 49 per cent stake in the 476-megawatt Baltic Eagle offshore wind farm and discussions between ADNOC and Germany’s RWE about additional liquefied natural gas opportunities. New agreements in artificial intelligence, energy and investment are expected to expand cooperation. The editorial argues that the partnership’s greatest potential lies in combining Germany’s industrial, engineering and technological capabilities with the UAE’s capital, energy, infrastructure, logistics and access to rapidly growing markets. Collaboration in AI, manufacturing, renewable energy and infrastructure could replace the older buyer-seller model. The relationship also has strategic diplomatic importance, since Germany has influence in Europe while the UAE maintains broad connections across Asia and Africa, including with countries that European governments may find difficult to engage. Sheikh Mohamed’s visit is presented as evidence that a historic connection has developed into a modern, forward-looking partnership capable of addressing 21st-century challenges.

German Chancellor Friedrich Merz has welcomed the UAE’s decision to invest €40 billion ($46.47 billion) in Germany, describing the commitment as a powerful signal of confidence in the country. The investment was announced on Thursday during UAE President Sheikh Mohamed bin Zayed’s state visit to Berlin. The funds will be directed toward several strategic sectors, including advanced technology, artificial intelligence, digital infrastructure and energy. Bavaria is expected to receive €10 billion of the total investment, highlighting the regional as well as national significance of the agreement. In a statement released by Mr Merz’s office on Friday, the chancellor said he was impressed by the UAE’s willingness to invest and argued that the commitment would support job creation, competitiveness and Germany’s ability to innovate. He also praised President Sheikh Mohamed’s business knowledge, expertise and commitment, saying that the UAE leader understands Germany as a place to do business. Mr Merz presented the investment as evidence that international investors continue to have substantial trust in Germany as a destination for investment and innovation. He thanked the UAE for its confidence in the country. The announcement forms part of efforts to deepen economic and political ties between the UAE and Germany. The article also notes that direct Abu Dhabi-to-Berlin flights are scheduled to begin on October 1, although it does not provide further details about the route or its connection to the investment agreement. The report was updated on September 11, 2026, at 1:15 p.m. UAE time.