Investment forms part of a wider €40 billion economic agreement with Germany covering artificial intelligence, digital infrastructure, and clean energy
MUNICH — The United Arab Emirates has committed €10 billion ($10.8 billion) in direct investment to the German state of Bavaria, anchoring a broader €40 billion economic package agreed during President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany.
Sheikh Mohamed met Bavarian Minister-President Markus Söder at the historic Munich Residenz on Friday to formalize the partnership. Talks centered on expanding bilateral initiatives across high-tech manufacturing, advanced computing, energy infrastructure, and industrial research.
During the talks, the two sides exchanged a Declaration of Intent on Strategic Investment and Cooperation. The agreement was signed by Dr. Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and Bavarian Premier Söder.
The €10 billion Bavarian allocation targets sectors where southern Germany holds deep industrial leverage. Capital will flow into artificial intelligence systems, enterprise data centers, next-generation semiconductor research, digital communications infrastructure, and energy security initiatives.
The Bavaria arrangement follows Thursday’s broader bilateral announcement in Berlin, where the UAE outlined plans to deploy €40 billion across Germany’s core industrial sectors over the coming years.
The UAE delegation included Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Special Affairs, and Sheikh Mohammed bin Hamad bin Tahnoon Al Nahyan, Adviser to the UAE President.
Sheikh Mohamed received full ceremonial honors upon arrival at the Munich Residenz, including a performance of the UAE national anthem and an inspection of the Bavarian guard of honour, before signing the palace’s official guestbook.
The deal marks an escalation in Gulf sovereign capital moving directly into European advanced manufacturing hubs. For Bavaria—home to German industrial champions including Siemens and BMW—the injection provides liquid capital for capital-intensive digital and green energy transitions amid persistent European industrial headwinds.
