UAE and Germany expand strategic alliance as trade hits $15.5 billion

President His Highness Sheikh Mohamed bin Zayed Al Nahyan commenced a state visit to Germany on Wednesday, 9 September, aimed at deepening industrial cooperation and expanding a strategic partnership that has seen non-oil trade surge to $15.51 billion in 2025. Industrial Integration and Clean Energy The bilateral relationship has evolved from traditional commodity trade into deep industrial integration, highlighted by the supply of solar-produced aluminium from Emirates Global Aluminium (EGA) to BMW’s Landshut plant in Bavaria. Since 2021, EGA has supplied 43,000 tonnes of solar-powered metal annually to the German carmaker, utilizing electricity generated at the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. This agreement was extended in November 2024 to increase the use of recycled metal in production. Data shows that non-oil trade between the two nations grew by more than 14 per cent, rising from $13.59 billion in 2024 to $15.51 billion in 2025. While German investment flows into the UAE totaled $8.96 billion between 2020 and 2024, recent Emirati acquisitions have marked a significant shift in capital direction. Strategic Acquisitions and Energy Security A cornerstone of this expanding alliance is the €14.7 billion acquisition of Leverkusen-based materials producer Covestro by XRG, ADNOC’s international investment arm, which was completed on 10 December 2025. The deal included a capital injection of €1.17 billion to support Covestro’s operations in the automotive…