Investment: Vereinigte Arabische Emirate planen Milliardeninvestitionen in Deutschland

The United Arab Emirates (UAE) intends to invest billions of euros in Germany during President Sheikh Mohamed bin Zayed Al Nahyan's two-day visit to Berlin and Munich. Chancellor Frank-Walter Steinmeier invited the guest, who met with Federal President and Federal Chancellor Friedrich Merz. Thirty-nine agreements and memoranda of understanding worth nearly 9.4 billion euros were signed between companies from both countries, covering projects in various sectors.

A joint council to promote mutual investments was also established. The sides emphasized the growing importance of reliable partners with common convictions in the face of regional and geopolitical instability. The UAE is facing Iranian attacks due to the recent US-led war against Iran, prompting both sides to deepen their defense cooperation.

The UAE also plans to expand its cooperation with Germany in the defense sector, including allowing the Emirates airline to operate additional flights from Berlin and Stuttgart. Currently, the airline can fly to four German airports: Frankfurt, Munich, Düsseldorf, and Hamburg. The UAE's airline CEO, Tim Clark, was reluctant to operate from Berlin and Stuttgart, preferring to keep those slots for other destinations.

The German government faced a dilemma, with Berlin and Stuttgart eager for new airlines and increased revenues for the airports. However, Lufthansa, the German airline, raised concerns about potential job losses and reduced competition from Dubai and Munich if more traffic were diverted to Frankfurt. Despite these concerns, the compromise reached is expected to be acceptable to Lufthansa.

The German airline already operates flights to Dubai and will continue to do so due to the war with Iran. The UAE has seen a 66% increase in exports to Germany since 2020, with a total trade volume of 13.3 billion euros in the last year. German direct investments in the UAE amount to 5.2 billion euros, while vice versa, they amount to 2.3 billion euros.

The Industrial and Commercial Chamber of Germany (DIHK) advocates for a swift conclusion of a trade agreement between the EU and the UAE that goes beyond mere tariff reductions and addresses existing regulatory hurdles, the investment climate, and digital trade. The ongoing tensions surrounding the Strait of Hormuz highlight the strategic importance of the Gulf region as a major economic and energy hub.