Germany and UAE Deepen Strategic Trade Relations

Image Source – WAM

Germany and UAE Trade Relations

According to the Emirates News Agency WAM, Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, met with Hendrik Josef Wüst, Minister-President of North Rhine-Westphalia, to enhance Germany and UAE trade relations. The discussions focused on enhancing trade relations and collaboration in technology, advanced manufacturing, and the green economy.

North Rhine-Westphalia is considered Germany’s economic powerhouse, contributing US$990 billion to the country’s GDP in 2024, and accounting for 20% of the total. The region is transitioning towards digital technologies, AI, smart manufacturing, and sustainable industries, aligning perfectly with the UAE’s economic vision.

According to Dr. Thani, the UAE has consistently nurtured a strong relationship with Germany. As the UAE advances into a new era of economic growth, significant opportunities for collaboration are emerging across the digital economy, the green transition, and advanced manufacturing sectors. The UAE’s extensive free-trade network offers North Rhine-Westphalia’s industries, particularly across Asia and Africa. The UAE also welcomes enterprises from North Rhine-Westphalia to become part of an innovation-driven ecosystem and to lay the foundations for deeper trade, investment, and technological cooperation between the two countries.

Germany UAE Trade Relations – Key Statistics

In 2024, UAE-Germany non-oil trade reached US$13.8 billion, up 5.4% from 2023. Within the EU, Germany is the UAE’s second-largest trading partner, with non-oil trade between the two nations. In addition to the sectors mentioned above, the two countries are exploring new opportunities in renewable energy, Industry 4.0, and logistics.

The EU and the UAE are strengthening investment ties to drive economic growth. The EU remains the second-largest global trade partner of the UAE, with non-oil trade reaching $67.6 billion in 2024. As a result of the Comprehensive Economic Partnership Agreement (CEPA), the UAE recorded US$1.424 trillion in total foreign trade in 2024, as outlined in the WTO’s “World Trade Outlook and Statistics” report. As the EU-UAE begins free trade agreement talks, the collaboration continues to unlock investment opportunities for European SMEs. On similar lines, Italy and the UAE also signed a US$40 billion deal to strengthen economic ties, focusing on future-oriented industries. 

UAE Economic Growth 2025

The UAE’s economic outlook is looking brighter than ever, with the IMF forecasting a robust 4% growth and the ICAEW report projecting a 4.8% surge in GDP by 2025, signaling powerful momentum across key sectors. The UAE’s consumer spending intentions are projected to grow by 13%, and this surge is closely linked to tourism growth as well as the UAE’s growing appeal among skilled professionals who are relocating for better career opportunities. As a result, the population continues to expand, with Dubai expected to surpass 4 million residents in 2025.

Why German Investors Are Flocking to Dubai in 2025

The UAE is rated among the top 10 destinations where German millionaires plan to relocate. Likewise, investment opportunities in Dubai real estate in 2025 indicate European nationals’ significant and growing presence. In 2024, Germans ranked among the top European nationalities driving Dubai real estate investment. The viral chocolate product “Dubai-Schokolade” sparked a surge in searches like “Was ist Dubai-Schokolade?” and it further strengthened Dubai’s brand image and boosted awareness in Germany, with growing curiosity among Germans eager to learn more about the city.

Why German SMEs Should Expand to Dubai and the UAE

Dubai and the UAE present an exceptional opportunity for German and European SMEs seeking international growth. With an investor-friendly business environment and direct access to high-growth sectors, the UAE stands out as a prime destination. Dubai, in particular, is emerging as the top choice for AI startups in 2025, further enhancing its appeal to forward-thinking businesses. Combined with the country’s strong focus on innovation and sustainability, the UAE is a strategic market for European companies ready to expand and thrive in the years ahead.

Research Konnection – As a leading market research company in the UAE, we help European SMEs expand successfully with tailored market feasibility studies and business planning. With a strategic presence both in Germany and the UAE, we simplify market entry and growth. Reach out to us at hello@researchkonnection.com to explore how we can support your expansion journey.