Beyond 50 years: AI and energy investment at heart of UAE-Germany economic ties

The economic ties between Germany and the United Arab Emirates have been growing steadily for five decades. In recent years, investments in the energy transition, advanced technology, and artificial intelligence have become increasingly important in driving their bilateral relations forward. This comes as UAE President Sheikh Mohamed is visiting Germany to deepen cooperation in various sectors.

German President Frank-Walter Steinmeier and Chancellor Friedrich Merz will meet with Sheikh Mohamed to discuss efforts to strengthen economic and development collaborations. The talks will address regional and international issues of mutual concern, with a focus on the energy sector.

UAE trade with Germany, the third-largest economy in the world, has been growing exponentially. In 2024, non-oil bilateral trade reached $15.51 billion, a 14.15% increase from the previous year. Exports to Germany grew by over 50%, while re-exports from the UAE increased by more than 17%.

The two nations have maintained strong diplomatic relations, with economic ties primarily anchored by bilateral trade and the exchange of services. However, investments in the industrial sector and advanced technology have flourished in recent years. High-level meetings between business and government delegations, as well as business and government exchanges, have contributed to strengthening these ties.

In June, the UAE's special envoy for business and philanthropy visited Germany, meeting with executives from major companies and institutions. This visit underscored the growing role of private sector partnerships in boosting economic relations.

Chancellor Merz's visit to the UAE in February aimed to discuss longstanding ties and explore opportunities for enhanced collaboration. The two leaders signed agreements to bolster cooperation in the energy sector, with Masdar and RWE agreeing to explore opportunities for liquefied natural gas supply to Germany and European markets. Covestro and Abu Dhabi's Fertiglobe also signed agreements to explore opportunities in sustainable materials.