UAE and Germany Strengthen Bilateral Ties with Focus on AI, Energy Transition, and Advanced Technology

With five decades of diplomatic and economic ties, bilateral relations between Germany and the UAE are evolving further, with investments in the energy transition, advanced technology and artificial intelligence driving the new phase of growth. This comes into focus as President Sheikh Mohamed is set to begin a state visit to Germany on Wednesday aimed at advancing long-standing ties.

The UAE leader will meet German President Frank-Walter Steinmeier and Chancellor Friedrich Merz to explore efforts to deepen co-operation, with a focus on economic and development sectors. The high-level talks will address regional and international developments and issues of mutual concern, state news agency Wam reported.

The UAE and Germany enjoy robust relations dating back more than 50 years. The UAE’s trade with Germany, the world’s third-largest economy and a country that accounts for about a quarter of Europe’s total economic output, has grown exponentially over the past few years. Last year, Germany’s non-oil bilateral trade with the UAE, the second-largest Arab economy, rose to $15.51 billion, a 14.15 per cent jump from the $13.59 billion recorded at the end of 2024, the UAE Ministry of Foreign Affairs said in a statement.

While the two countries have maintained strong diplomatic relations, economic ties were largely anchored by growth in bilateral trade. Non-oil trade, as well as the exchange of services, still forms the foundation of two-way commercial ties, but investments in the industrial sector and advanced technology have flourished in the past decade.

In June, Badr Jafar, special envoy of the UAE Minister of Foreign Affairs for business and philanthropy, visited Germany and held more than a dozen meetings with senior executives from some of its largest companies and institutions. The engagements, also attended by Ahmed Alattar, UAE ambassador to Germany, in Dusseldorf and Munich underscored the growing role of private sector partnerships in strengthening economic ties.

Discussions with companies including Airbus Defence and Space, BMW Group, Covestro, Wilo Group, Henkel, energy major RWE, Sefe Energy, trade promotion agency NRW.Global Business, Knorr-Bremse, naval shipbuilder ThyssenKrupp Marine Systems, German software companies Nemetschek Group and Allplan, and Deutsches Museum, focused on exploring options to expand investment.

Mr Jafar's visit followed a trip by German Chancellor Friedrich Merz to the UAE in February, when he held talks with Sheikh Mohamed in Abu Dhabi. The two leaders witnessed the signing of agreements to bolster collaboration in the energy sector. Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and managing director and group chief executive of Adnoc, oversaw the signing of three deals during the working visit.

According to Berlin, the UAE is Germany’s most important economic partner in the six-member Gulf Co-operation Council. The UAE is in advanced discussions with the EU for a Comprehensive Economic Partnership Agreement (Cepa) aimed at deepening trade, investment and co-operation across strategic sectors.

The energy sector is among the clearest examples of how the relationship between UAE and Germany has advanced over the past decade. The two sides formed a bilateral energy partnership in 2017, followed by a hydrogen task force in 2021 and the Energy Security and Industry Accelerator in 2022. Cooperation has evolved from hydrocarbon exports alone to include LNG, low-carbon ammonia, renewable energy, hydrogen, energy efficiency, storage, grid integration, and the emerging intersection between energy and AI.