UAE-Germany Economic Ties Shift Toward Renewable Energy, Hydrogen and AI

The economic partnership between the United Arab Emirates (UAE) and Germany is moving beyond conventional trade towards artificial intelligence (AI), renewable energy, hydrogen, advanced manufacturing and digital infrastructure, as both countries seek to expand investment, technology and industrial cooperation.

The shift comes during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to Germany, with bilateral engagement increasingly focused on sectors expected to drive future economic growth. The relationship has expanded from trade and investment to innovation, technology, clean energy, tourism, logistics and human capital development.

Non-oil trade in goods between the two countries reached USD 15.56 billion in 2025, registering a 14.55 percent increase from USD 13.59 billion in 2024. German exports to the UAE rose from about EUR 8.6 billion in 2023 to EUR 9.71 billion in 2024 and EUR 11.39 billion in 2025, a 17.3 percent annual increase.

German imports from the UAE stood at approximately EUR 1.87 billion in 2025, taking total merchandise trade to around EUR 13.26 billion. Germany ranked the UAE as its 26th-largest export destination and 60th source of imports globally in 2025.

Services are also becoming an important part of the relationship. German services exports to the UAE reached EUR 2.97 billion in 2025, while services imports from the UAE were valued at EUR 4.37 billion.

Investment flows point to a deeper economic relationship. German FDI stock in the UAE reached EUR 4.06 billion in 2024, while UAE FDI stock in Germany stood at EUR 2.08 billion. Investment cooperation spans technology, advanced manufacturing, energy, logistics, tourism and digital businesses.

Renewable energy and hydrogen are emerging as key areas of cooperation. The UAE’s energy resources, renewable-energy capacity, infrastructure and investment capabilities complement Germany’s engineering expertise and industrial technology base. Cooperation in hydrogen, renewable energy and energy efficiency could therefore connect UAE capital and energy resources with German technology and industrial capabilities.

The partnership also comes as Germany seeks to diversify its energy supplies, supply chains and economic relationships, while the UAE continues to strengthen its position as an international investment and technology hub.

AI is another major area of potential growth. At GITEX Europe 2025 in Berlin, UAE startups and small and medium-sized enterprises showcased technologies spanning AI, climate technology, digital health, smart cities and industrial innovation. The UAE delegation included 21 companies, including 10 startups.

The two countries see scope for greater cooperation in industrial AI, with applications across manufacturing, heavy engineering, energy, transport, logistics and supply-chain management. This could shift bilateral engagement from a traditional supplier-buyer model towards technology development and joint project deployment.

The UAE’s growing corporate ties with Germany are supported by a strong German business presence in the country. There were 7,684 German companies operating in the UAE in 2025, while more than 2,000 German companies used the UAE as a regional headquarters. German trademarks registered in the UAE reached 20,842 by late May 2026.

Business connectivity is also strengthening, with more than 800,000 German visitors recorded at UAE ports of entry in 2025 and 102 scheduled weekly flights between the two countries as of August 2026.

With complementary strengths in energy, capital, technology, research and industrial capabilities, renewable energy, hydrogen and emerging technologies are expected to play a central role in the next phase of UAE-Germany economic cooperation.