Supply chain disruptions make UAE's €40 billion investment in Germany crucial, says minister

Recent global supply chain disruptions played a significant role in prompting the UAE's decision to invest €40 billion ($46.47 billion) in Germany, according to Dr Thani Al Zeyoudi, the UAE's Minister of Foreign Trade. The investment announcement came during President Sheikh Mohamed's visit to Germany. This €40 billion sum will be split across various sectors, including industry, advanced technology, artificial intelligence, digital infrastructure, and energy. Specifically, €10 billion will be allocated towards Bavaria.

Dr Al Zeyoudi highlighted the strategic nature of the UAE-Germany relationship, stating that both countries are complementary and capable of propelling each other forward. He emphasized the impact of recent global disruptions, such as supply chain issues, energy shortages, and technological advancements, on conventional sectors.

Recognizing the importance of strengthening international partnerships, Dr Al Zeyoudi stressed that Germany is one of the UAE's most crucial economic allies in Europe. He praised Germany's status as an economic powerhouse, industrial hub, and center for talent and technology, noting that the timing of the investment is perfect for advancing the relationship.

Some of the investment projects are nearing implementation and will yield immediate results, while others will require more time. Energy, technology, and logistics were identified as the three most critical areas for future investment. Energy holds the top spot due to its historical significance in the UAE-Germany relationship, while technology and data centers offer significant potential, followed by logistics.

Dr Al Zeyoudi explained that the UAE will benefit from Germany's global logistics and trade capabilities, financial resources, and access to markets in the Middle East, Asia, and Africa. Conversely, Germany stands to gain from the UAE's logistics and trade prowess, capital, and market access to various industries and businesses.

He emphasized that these investments should not be seen as traditional financial transactions but as long-term partnerships between Emirati and German businesses. The investments will facilitate the application of German technology in the UAE, as well as the infusion of additional investments from the UAE into Germany and the establishment of new partnerships.

Some projects will leverage German technology, while others will rely on the technology of both nations.

To ensure the successful execution of these agreements, a new UAE-Germany Investment Council will be established to oversee the projects and facilitate their implementation. Dr Al Zeyoudi stressed that the council's members, including those leading projects for their respective institutions, will face high expectations. Ultimately, the success of the partnership will be measured by the value it generates for the people of both countries and their respective regions, regardless of which side benefits more in specific areas.