UAE and Germany Deepen Economic Ties, Forge Stronger Trade Partnerships

The United Arab Emirates and Germany are reinforcing their already strong economic ties, with both nations expressing a commitment to expanding collaboration across various sectors. Recent high-level discussions and forums have highlighted the mutual benefits of a strengthened partnership, paving the way for increased trade and investment.

Germany recognises the UAE as a crucial partner in the Middle East, serving as a strategic gateway to regional and global markets. The UAE's dynamic economy and strategic location make it an attractive hub for German businesses looking to expand their reach. Similarly, the UAE views Germany, the largest economy in the European Union and a global industrial powerhouse, as a key partner in its diversification and development goals.

Discussions between Dr. Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, and German officials have focused on enhancing cooperation in key areas such as technology, advanced manufacturing and the green economy. Both nations see significant opportunities to collaborate on projects related to renewable energy, digital technologies, and smart manufacturing. The UAE's investments in Germany's ammonia value chain and the development of hydrogen as a renewable energy source exemplify this shared vision.

Dr. Thani said:

"The United Arab Emirates has long enjoyed a positive and productive relationship with Germany, and North Rhine-Westphalia, with its industrial heritage and forward-looking vision, has been central to it. From the digital economy to energy transition and the green economy, we see a multitude of avenues for cooperation and investment, while our free-trade network can ensure the region's industrial output can seamlessly reach key markets in Asia and Africa.

"The UAE also remains an open, welcoming business environment for any enterprises from North Rhine-Westphalia seeking to expand into the Middle East and help develop our industrial and innovation ecosystem.Today's meeting with HE Wüst and the subsequent business roundtable will help create the networks that can facilitate this activity, and we remain on hand to support bilateral trade and investment flows in the months and years ahead."

The economic partnership between the two countries is already robust. In 2024, non-oil trade between the UAE and Germany reached $13.8 billion, marking a 5.4% increase compared to the previous year. The UAE is also a significant investor in Germany, with over $1.2 billion committed to various projects. This strong trade relationship is expected to grow further as both countries explore new avenues for collaboration.

Looking ahead, the UAE's plan to commence negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with the European Union, where Germany is the largest single economy, signals a long-term commitment to strengthening economic ties. Such an agreement would further facilitate trade and investment, creating new opportunities for businesses in both countries.

The relationship between the UAE and Germany is characterised by strong economic ties, a shared vision for the future, and a commitment to expanding collaboration across key sectors. As both nations continue to explore new partnership opportunities, the economic relationship between the UAE and Germany is poised for further growth, benefiting both countries and contributing to global economic development.