UAE, Germany Deepen Trade Ties With 29 New Business Deals During State Visit

(MENAFN- Khaleej Times) UAE President Sheikh Mohamed bin Zayed Al Nahyan visited Germany from September 9 to 11, 2026 at the invitation of President Frank-Walter Steinmeier.

During this first State Visit from a President of the UAE to Germany, Sheikh Mohamed bin Zayed Al Nahyan also met Federal Chancellor Friedrich Merz

Recommended For You

The leaders acknowledged that the visit takes place 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.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The State Visit reemphasised that the German-UAE partnership is propelled by the shared commitment to peace, security, economic prosperity, the development and use of future technologies, and sustainable development.

Strategic Dialogue format

During the State Visit, Sheikh Mohammed bin Zayed Al Nahyan and Federal Chancellor Friedrich Merz announced the establishment of a Strategic Dialogue format, intended to revitalise the Comprehensive Strategic Partnership, founded in 2004.

The Strategic Dialogue will steer the progress of deepened cooperation across multiple sectors, including international and regional security, defence, trade and investment, energy and climate, emerging technology, digitalisation, economy, transportation, environment, culture and education, and ensure that concrete outcomes for mutual benefit will be achieved.

They affirmed that the Strategic Dialogue represents a lasting investment in the relationship, providing the structure through which that vision will be translated into sustained, concrete cooperation.

Deepening bilateral trade

The two sides affirmed their commitment to deepening bilateral trade and investment ties and expanding cooperation across priority sectors.

As a concrete expression of that commitment, Sheikh Mohamed bin Zayed Al Nahyan and Federal Chancellor Friedrich Merz welcomed the signing of a Joint Declaration of Intent (JDoI) on the establishment of the German-UAE Investment Council as a platform to advance investments and strengthen engagement between the public and private sectors.

They also welcomed the outcomes of the UAE-Germany Business Forum, as well as the resumption of the Joint Economic Committee, underlining their support for closer economic co-operation, investments, and joint projects.

In particular, both leaders welcomed the signing of 29 business-to-business MoUs and agreements between UAE and German companies, with a total value exceeding €9.356 billion, reflecting the growing depth of private-sector cooperation between the two countries.

The two leaders welcomed the announcement of a UAE investment package totalling €40 billion in Germany, reflecting the shared ambition of both countries to deepen their strategic partnership and the UAE's confidence in Germany as a leading destination for investment, innovation and industrial growth.

The package is expected to contribute to strengthening industrial competitiveness, advancing technological leadership and supporting long-term economic growth in Germany.

The package includes investments in advanced digital infrastructure, including the development of new state-of-the-art data centres with a capacity of approximately 1 GW. Germany underscored its commitment to fostering a favourable environment for their implementation.

Beyond the €40 billion package, the two leaders also welcomed plans for further corporate investments and partnerships between UAE and German companies, including initiatives involving Covestro, RWE, Adnoc and Masdar.

These initiatives build on the strong foundation of existing UAE investments in Germany, including XRG's approximately €15 billion investment in Covestro, and underscore the growing depth and ambition of the economic relationship between the two countries.

Both sides acknowledged the continued growth in the bilateral non-oil trade, which reached $15.5 billion in 2025, an increase of over 14% compared to 2024, while cumulative investment flows between the two countries exceeded $10 billion over the 2021-2025 period. They further welcomed progress in the negotiations on the UAE-EU Comprehensive Economic Partnership Agreement.

UAE-EU FTA

The UAE is currently negotiating with the EU, the world's largest internal market, the terms of a Free Trade Agreement (FTA). Germany and the UAE support reaching a comprehensive, commercially ambitious agreement. The strengthening of the EU-UAE bilateral trade relations through a comprehensive and ambitious FTA will bring economic benefits to both sides.

Both sides affirmed that increased cooperation in defence and defence technology constitutes a key pillar of the relationship and commended the signing of a Letter of Intent (LoI) concerning the exploration of defence cooperation, supported by a high-level defence roundtable, and the signing of an LoI on police and security cooperation. They agreed to elevate this cooperation beyond a supplier-and-recipient dynamic toward a broader, more strategic partnership.

Energy sector

Both leaders reaffirmed their deep and enduring partnership in the energy sector, built on trust and a shared commitment to strengthening energy security and system resilience.

Building on the UAE-Germany Energy Partnership, the two sides welcomed continued cooperation across the energy sector and agreed to deepen efforts to support secure, diversified and affordable energy supplies for the UAE and Europe.

The leaders welcomed the expansion of strategic, long-term cooperation across the full energy value chain, encompassing conventional and emerging energy resources, including LNG, renewables, and hydrogen. They noted with satisfaction the growing contribution of bilateral flagship projects involving leading UAE and German companies, reinforcing security of supply and system resilience, and supporting industrial competitiveness.

Both leaders welcomed the ongoing development of the Global Energy Efficiency Alliance (GEEA) and reaffirmed their commitment to strengthening international cooperation on energy efficiency as a key enabler of the global energy transition.

Furthermore, as founding members of the International Renewable Energy Agency (IRENA), both sides reaffirmed the importance of the Agency's role in advancing the global energy transition and welcomed further close cooperation.

Germany further welcomed the UAE's leadership in advancing efforts to reduce methane emissions from the oil and gas sector and its leadership in launching the Oil and Gas Decarbonisation Charter (OGDC) at COP28.

Technology, AI

In the field of critical technology, both sides reaffirmed their commitment to expanding cooperation in artificial intelligence and emerging technologies, fostering exchange, investment, research and development, including joint development in these critical sectors.

To take into account the UAE's leading role in advanced technologies, Sheikh Mohammed bin Zayed Al Nahyan and the Federal Chancellor Friedrich Merz welcomed the Joint Declaration of Intent (JDoI) on the exploration of cooperation on data hosting and information systems through the establishment of data embassies.

This cooperation will explore a new model of technology diplomacy through secure and resilient digital infrastructure and strengthen the foundations of trusted digital cooperation between the two countries.

Sustainability

Water conference

The two leaders commended preparations for the 2026 United Nations Water Conference, to be co-hosted by the UAE and Senegal in Abu Dhabi from December 8 to 10, 2026.

They highlighted the conference's role in strengthening partnerships, mobilising investment and advancing innovative, practical and scalable solutions, while underscoring its importance in driving global water action and progress towards Sustainable Development Goal 6.

Environmental cooperation

The two sides also welcomed the signing of the Joint Declaration of Intent (JDoI) on Cooperation in the Field of Environment.

Aviation sector

The UAE and Germany enjoy strong and longstanding relations in civil aviation, supported by significant air connectivity and growing economic, trade, tourism and people-to-people ties.

Building on these relations, the German side agreed to add an additional fifth point to the route schedule, permitting one UAE national carrier to operate an agreed number of frequencies to the fifth point, in additional to the four existing points in Germany, which will be capped at the current number of frequencies for this carrier.

UAE citizens to benefit from EasyPASS system

Both sides welcomed the signing of a number of further agreements on the occasion of the visit, including the facilitation of UAE citizens' entry at German airports through the EasyPASS system and an Agreement on Mutual Legal Assistance in Criminal Matters, and looked forward to the early conclusion of the remaining instruments under negotiation, including on the avoidance of double taxation.

UAE, Germany condemn Iranian attacks and urge diplomacy

The two sides exchanged views on key regional and international developments. Recognising the willingness to contribute to peace, stability and security in the Middle East, the two leaders emphasised the need for diplomacy and dialogue.

The UAE President conveyed his sincere appreciation for Germany's steadfast support and solidarity in the face of the Iranian aggression against the UAE, commending it as a reflection of the enduring friendship and strategic partnership between the two nations. The Federal Chancellor expressed Germany's firm stance in solidarity with the UAE and other regional partners.

The two leaders condemned in the strongest terms the egregious attacks by Iran against the UAE and other regional states, including against civilian infrastructure, in clear breach of their sovereignty and territorial integrity and in flagrant violation of international law, including the UN Charter.

The leaders further condemned Iran's closure of the Strait of Hormuz and its threats and attacks on merchant and commercial vessels, emphasising the critical importance of upholding international law, including the right of transit passage, in international waterways, recalling UN Security Council resolution 2817 (2026).

In this regard, the leaders demanded that Iran refrain from any actions or threats aimed at closing, obstructing or otherwise impeding the right of transit passage through the Strait of Hormuz or against merchant or commercial vessels in and around the Strait of Hormuz, recalling the decisions and outcomes of the Council and committees of the International Maritime Organisation.

They also reiterated the need to prevent Iran from acquiring nuclear weapons and address its wider threats, including its missile and drone programmes and support for regional proxies.

ALSO READ

UAE President welcomed in Germany with 21-gun salute, guard of honour UAE seeks to build momentum at Ambiente exhibition in Germany

MENAFN11092026000049011007ID1111650717