Strengthening UAE-Germany Business Relations
- 11.07.2025
- Posted by: Uwe Hohmann
- Category: Dubai
The relationship between the UAE and Germany continues to strengthen, and for German businesses considering expansion to the UAE, the conditions are favorable. Recent high-level diplomatic meetings in Berlin have reinforced what we’ve observed over our two decades helping German companies establish here: this partnership delivers real business results.
Strong Trade Performance
Non-oil bilateral trade between the UAE and Germany reached AED50 billion (USD 13.6 billion) in 2024, up 4% from the previous year. The first four months of 2025 showed even stronger momentum, with bilateral trade growing 17.7% compared to the same period in 2024.
UAE exports to Germany increased by 77% in early 2025, driven primarily by pearls and precious metals (up 112.5%) and machinery and equipment (up 85%). This growth reflects the UAE’s evolution from a regional trading hub to a sophisticated manufacturing and processing center.
Why German Companies Choose the UAE
Over nearly 20 years of guiding German businesses through UAE setup, we’ve watched the market mature significantly. The UAE now offers German companies access to over 2 billion consumers across the Middle East, Africa, and Asia, combined with infrastructure and business standards that meet German expectations.
The regulatory environment supports the efficiency and innovation German companies are known for. Both mainland companies and free zones now offer 100% foreign ownership for most business activities, with streamlined setup processes that simplify establishment.
Key Growth Sectors
Recent diplomatic discussions highlighted several areas where German expertise aligns with the UAE market’s needs. Renewable energy represents a significant opportunity, with Germany’s solar and wind technology expertise complementing the UAE’s clean energy transition plans.
Manufacturing and industrial technology continue driving growth. The UAE’s healthcare infrastructure development, combined with German medical technology capabilities, creates opportunities across medical devices and healthcare services.
Professional services, consultancies, and technology companies each have clear pathways that maximize operational efficiency in the UAE market.
Practical Establishment Considerations
The UAE offers multiple business structures for German companies. Free zone entities can provide tax advantages, simplified operations, and operate internationally, while mainland companies can work throughout the UAE and access government contracts. The optimal choice depends on your specific business model and operational requirements.
Manufacturing companies often benefit from free zone advantages, while service providers typically find a mainland setup more suitable for client engagement. Each structure has distinct advantages that should align with your business objectives.
Visa and residency processes have become more streamlined. The Golden Visa program provides long-term stability for business owners and key employees, making the transition process more predictable for German professionals.
Current Market Conditions
The UAE-Germany Energy Partnership, established in 2017, has created a foundation that continues to generate opportunities. This cooperation extends beyond energy to include infrastructure development, healthcare technology, and manufacturing sectors.
The business environment here maintains the operational standards that German companies expect. Modern logistics facilities, advanced telecommunications networks, and established legal frameworks provide the foundation for efficient operations while accessing new markets.
Comprehensive UAE Business Solutions
For German businesses considering UAE expansion, the fundamentals have never been stronger. Over our nearly two decades here, we have watched bilateral trade flourish and witnessed the regulatory environment evolve to welcome German businesses.
The key to success remains what it’s always been: understanding your specific industry requirements and matching them to the proper UAE structure. As a German team with deep local knowledge, we’ve guided hundreds of companies through this process, ensuring they establish efficiently and avoid the common pitfalls that can delay operations.
Our comprehensive services are designed to support you every step of your business journey in the UAE:
- Company Formation: We guide you through all aspects of setting up your company, whether in a free zone or on the mainland, ensuring you choose the best option for your business.
- Visa and Emirates ID Services: We streamline the process of securing visas and Emirates IDs for you and your employees, allowing you to focus on your business operations.
- Accounting: Our team ensures your business stays compliant with local financial regulations, which is crucial for maintaining good standing in Dubai’s business community.
- Tax: We help manage Dubai’s tax environment, ensuring your business remains compliant while optimizing your tax position.
- Business Consulting: Leveraging our deep understanding of Dubai’s market, we provide valuable insights and help you develop effective strategies to succeed.
Visit our services page to learn more about everything we do.
