Germany has welcomed an ambitious investment commitment from the United Arab Emirates that could bring around €40 billion into the German economy, describing the move as a strong vote of confidence in the country’s position as an international centre for business, innovation and industrial development.

The investment announcement came during the UAE leadership’s state visit to Germany and was welcomed by German Chancellor Friedrich Merz. The planned investment package is expected to deepen economic ties between the two countries while creating opportunities across several areas of the German economy.

Merz described the scale of the planned investment as a powerful signal of international confidence in Germany. He highlighted the potential contribution of the investment to employment, competitiveness and technological innovation.

The announcement also reflects the growing economic relationship between Germany and the Gulf region. For the UAE, increased investment in Germany offers access to one of Europe’s largest economies, while German companies and industries could benefit from stronger financial and commercial connections with the Emirates.

Germany has been seeking to strengthen its position as an attractive destination for international capital while supporting industrial competitiveness and innovation. Large-scale foreign investment can play an important role in financing new projects, expanding businesses and supporting the development of advanced technologies.

The proposed UAE investment therefore carries significance beyond its financial value. It could help encourage closer cooperation between German and Emirati businesses and create new opportunities for partnerships in areas where both countries see long-term economic potential.

The announcement comes at a time when Germany is placing greater emphasis on investment, industrial renewal and maintaining its competitive position in the global economy. Stronger international investment links could become an important part of those efforts.

The development is also expected to give fresh momentum to Germany-UAE economic relations, with both sides having an opportunity to expand cooperation and explore additional areas for future investment.