UAE, North Rhine-Westphalia Strengthen Trade and Green Ties

The United Arab Emirates (UAE) continues to strengthen its international economic relationships, reinforcing its position as a pivotal hub for global trade and investment. In a landmark meeting, Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, held discussions with Hendrik Josef Wüst, Minister-President of Germany’s North Rhine-Westphalia region. Their dialogue centered around expanding bilateral economic relations with a strong focus on technology, advanced manufacturing, and the green economy. This engagement marks a significant step in the UAE’s broader strategy to deepen international trade partnerships, drive innovation, and champion sustainable economic development.

The discussions were further supported by a high-level business roundtable, bringing together leading figures from both the UAE and Germany’s private sectors. The platform provided fertile ground to explore collaborative opportunities in key areas. North Rhine-Westphalia (NRW), Germany’s economic engine, emerged as a natural ally for the UAE given its leadership in digital transformation, artificial intelligence, advanced manufacturing, and green initiatives—sectors that align closely with the UAE’s ambitious economic agenda.

North Rhine-Westphalia: Germany’s Industrial and Innovation Hub

North Rhine-Westphalia stands as one of Europe’s most dynamic and influential economic regions. Representing 20 percent of Germany’s total economic output, NRW recorded a remarkable GDP of $990 billion in 2024. It hosts 37 of Germany’s top 100 corporations, serving as a vital nucleus for manufacturing, technological innovation, and industrial advancement.

Once recognized as Germany’s industrial heartland, NRW has skillfully transitioned toward a knowledge-driven economy. With a strategic focus on digital technology, smart manufacturing, artificial intelligence, water management solutions, and agricultural technology, the region has redefined itself as a leader in innovation. Its firm commitment to green economic principles, such as renewable energy and sustainable urban development, mirrors the UAE’s long-term vision for diversified and sustainable growth.

Expanding Trade and Investment Cooperation

Dr. Thani Al Zeyoudi reaffirmed the UAE’s longstanding and fruitful relationship with Germany, noting that North Rhine-Westphalia plays a particularly critical role in deepening economic engagement. The UAE’s expansive network of free-trade agreements was highlighted as a key advantage for German industry, providing streamlined access for NRW’s goods and industrial outputs to fast-growing markets across Asia and Africa.

At the same time, the UAE’s business-friendly ecosystem offers German companies a strong base to expand into the Middle East and beyond. With its open economy, progressive regulatory environment, and emphasis on innovation, the UAE presents an ideal environment for foreign enterprises seeking growth opportunities.

Both sides identified clear opportunities for collaboration across sectors such as energy transition, advanced manufacturing, digital transformation, and the green economy, setting the stage for a new era of partnership.

Green Economy and Hydrogen Energy Collaboration

A central pillar of the UAE-NRW partnership is a shared commitment to advancing the green economy. Emirati investments have already contributed significantly to the development of NRW’s ammonia value chain, a vital component in establishing renewable hydrogen energy infrastructures.

Hydrogen energy is widely regarded as a critical solution for decarbonizing heavy industries and transportation systems. The UAE’s strategic investments into NRW’s green technologies signal a strong commitment to building sustainable energy ecosystems, positioning both partners at the forefront of the global energy transition.

This collaboration emphasizes that sustainability and economic growth are not mutually exclusive, but deeply interconnected. By aligning investment and innovation with environmental stewardship, the UAE and Germany are setting new international benchmarks for green industrial development.

Robust UAE-Germany Bilateral Trade Relations

Trade between the UAE and Germany has consistently demonstrated strength and resilience. In 2024, their non-oil trade volume reached $13.8 billion, marking a 5.4 percent increase over 2023. This impressive growth underscores the dynamic and evolving nature of their economic ties, even amid broader global challenges.

Germany ranks as the UAE’s second-largest trading partner within the European Union and stands 13th among its global trade partners. These rankings are a testament to the depth and longevity of the relationship.

The UAE’s non-oil exports to Germany surged by 44.7 percent in 2024, reaching $616 million. Re-exports stood at $1.1 billion, reinforcing Germany’s role as a crucial European hub for Emirati goods. Meanwhile, German imports into the UAE increased to $12.1 billion, maintaining Germany’s strong position as the UAE’s second-largest import partner from Europe.

These figures reflect a deepening relationship built not only on historical ties but also on a shared commitment to growth in future-oriented sectors like clean energy, digital innovation, and industrial technology.

Strengthening Links: UAE and the European Union

The UAE’s ambitions extend beyond its partnership with Germany to the broader European Union. In 2025, the UAE announced its intention to launch negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with the EU.

Germany, as the EU’s largest economy, plays a key role in this development. A successful CEPA would unlock substantial opportunities for greater trade flows, investment partnerships, and joint technological initiatives between the UAE and Europe.

Such an agreement would offer businesses on both sides expanded market access, harmonized regulatory frameworks, and a platform to drive forward sectors critical to the 21st-century economy, including advanced technology, clean energy, logistics, and financial services. It would further cement the UAE’s role as a strategic economic bridge connecting Europe, Asia, and Africa.

Progress Reflected Through the UAE-German Business Forum

The close ties between the UAE and Germany were further underscored during the UAE-German Business Forum held in February 2025 at Abu Dhabi Global Market (ADGM). The forum convened senior government officials, business leaders, and private sector innovators from both countries.

Key participants included Dr. Thani bin Ahmed Al Zeyoudi, Dr. Jörg Kukies, Germany’s Minister of Finance, UAE Ambassador Ahmed Alattar, and German Ambassador Alexander Schönfelder. Their dialogues revolved around strengthening partnerships in areas of clean energy, digital transformation, and industrial innovation.

Notably, the forum celebrated achievements under the Energy Security and Industry Accelerator Agreement, signed in 2022. This agreement has already facilitated substantial investments in low-carbon ammonia production, liquefied natural gas (LNG) infrastructure, and offshore wind projects, including Masdar’s acquisition of a stake in Germany’s Baltic Eagle offshore wind farm. Once operational, the wind farm will deliver clean electricity to approximately 475,000 households in Germany.

Germany’s increasing investments in the UAE’s fast-growing sectors, including artificial intelligence, automation, and advanced manufacturing, were also spotlighted. These efforts are being amplified by the UAE’s NextGen FDI initiative, which actively attracts forward-looking global enterprises to establish regional headquarters within the Emirates.

A Shared Vision of Innovation and Sustainability

At the heart of the UAE-Germany partnership is a shared commitment to innovation and sustainability. Both nations recognize that economic leadership in the modern era requires not just technological excellence, but also environmental responsibility.

Joint initiatives in renewable energy, smart infrastructure, digitalization, and advanced manufacturing are designed to drive mutual prosperity while contributing meaningfully to global sustainability goals.

The UAE’s openness to strategic international partnerships, coupled with Germany’s industrial and technological expertise, forms a potent alliance. Together, they are poised to redefine what global economic collaboration looks like in the 21st century—building stronger, smarter, and more sustainable economies for the future.