BERLIN — The leader of the United Arab Emirates was on a state visit to Germany on Thursday that resulted in a promise to invest 40 billion euros ($46.5 billion) into Europe's top economy.

 

The money would partly pay for data centres with a capacity of up to one gigawatt, Berlin said, and an "Investment Council" would be set up to boost business links between the two nations.

 

The Gulf is a key source of capital for the AI boom as oil-rich states in the region seek to invest their energy wealth.

 

"The UAE invests for the long term and builds partnerships that endure," UAE Industry Minister Sultan Ahmed Al Jaber said.

 

"Germany has been an important strategic and economic partner for decades and the additional 40 billion euros intended investment reflects our ambition to invest in that relationship."

 

Berlin had earlier rolled out the red carpet for President Mohamed bin Zayed Al Nahyan, who met Chancellor Friedrich Merz after earlier being received with military honours by President Frank-Walter Steinmeier.

 

The UAE is Germany's largest trading partner in the Gulf, with bilateral trade topping $15 billion last year, and many big German companies have a presence there including BMW, Siemens, ThyssenKrupp and rail operator Deutsche Bahn.

 

German and Emirati companies had signed a further 29 agreements with a total value of 9.4 billion euros during the visit, Berlin said.

 

The UAE meanwhile has made major investments in Germany, including in the chemical industry and offshore wind power.

 

During Merz's visit in February, German energy giant RWE and Abu Dhabi's national oil company ADNOC signed a memorandum of understanding on LNG imports over the next decade.

 

Germany, the largest EU economy, supports talks towards a European Union free trade deal with the Emirates.