Energy remains a core pillar of German-UAE cooperation. In 2021, the two countries expanded their cooperation on renewable energy into a broader Energy and Climate Partnership. Given the size of Germany’s economy and its importance within Europe, stronger UAE-Germany economic ties could also support the UAE’s wider economic relationship with the European Union. The President’s visit therefore provides an opportunity to build on existing cooperation and identify new areas for trade and investment.

Advancing UAE–German partnership

The visit comes at a time of increasing engagement between the UAE and Germany. During Chancellor Merz’s February visit, the two countries discussed opportunities to strengthen energy cooperation, while his visit to Adnoc’s headquarters highlighted the importance of the energy partnership. In June 2026, UAE Special Envoy of the Minister of Foreign Affairs for Business & Philanthropy Badr Jafar also held more than 15 meetings with senior executives and institutional leaders in Germany. In this context, Sheikh Mohamed’s visit provides an opportunity to build on the progress made during the year and identify new areas of cooperation. The discussions are also expected to address regional and international developments and other issues of mutual concern, reflecting the broader strategic nature of UAE-Germany relations.

Regional turmoil, global repercussions

As the UAE continues to expand its non-oil trade, Germany remains a natural partner, combining its position as one of Europe’s leading industrial economies with a strong, export-oriented economic model. However, as the recent regional conflict has shown, freedom of navigation is paramount to the economic security of both the region and Europe. Germany, like much of the global community, has not remained immune to rising inflation as a result of the US-led war against Iran, particularly through higher energy costs. Considering the recent unravelling of the MoU and subsequent attacks against global shipping in the Strait of Hormuz, increased diplomatic efforts to deepen security ties and increase investments in anti-drone technology and air defence systems remain critical to both the UAE’s security and the protection of open international waterways.

Focus on the long game

Looking beyond regional challenges, the UAE and Germany, both increasingly influential middle powers, are focusing on the long-game, with investments in renewable energy, advanced technology, and artificial intelligence. Following his stop in the UAE, Merz remarked: “In a world of great uncertainty, what is needed above all else is reliability in bilateral relations. I can offer that from Germany.”

Ali Abdulla Al Ali

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