UAE-Germany Business Relations Reach New Heights in 2025
- 18.10.2025
- Posted by: Uwe Hohmann
- Categories: Company Setup, Dubai, Europe
The economic partnership between the UAE and Germany continues to strengthen in 2025, opening fresh opportunities for businesses operating in both markets.
For companies in Dubai and across the UAE, understanding these developments is essential for planning and market expansion.
Strong Trade Growth
Non-oil trade between the UAE and Germany has shown impressive growth. In 2024, bilateral trade reached AED 49.9 billion, reflecting steady growth in commercial activity.
The first half of 2025 showed even stronger performance, with trade volumes climbing 19 percent year-on-year to nearly AED 27.6 billion.
What is important to note here is the balance across different trade categories. UAE exports to Germany surged by 110 percent, while imports rose by 15 percent and re-exports increased by approximately 10 percent.
Among European Union countries, Germany is the UAE’s second-largest trading partner, and ranks 13th globally overall.
This diversified growth pattern suggests deepening integration rather than dependence on a single trade corridor.
German Business Presence in the UAE Expands
German companies have shown growing confidence in the UAE business environment. Membership of German firms at the Abu Dhabi Chamber of Commerce and Industry increased by 17 percent in the first eight months of 2025 compared to the same period in 2024.
This expansion spans multiple industries, including engineering, energy, aviation, logistics, and financial services. German businesses view the UAE as more than a regional market. The country serves as a center for accessing markets across the GCC (Gulf Cooperation Council), Africa, and Asia.
According to business surveys conducted by the AHK (German-Emirati Joint Council for Industry and Commerce), 61 percent of German companies in the UAE expect improved business performance, while 52 percent plan to increase their investments. These indicators point to sustained optimism about the UAE’s economic trajectory.
Industries Driving Future Collaboration
Recent discussions between UAE and German officials have identified priority areas for deeper cooperation. Energy transition remains at the forefront, with particular emphasis on green hydrogen, renewable energy projects, and low-carbon technologies.
The Energy Security and Industry Accelerator Agreement, signed in 2022, has already facilitated investments in liquefied natural gas and renewable energy infrastructure. Masdar, the UAE renewable energy company, has invested in the Baltic Eagle offshore wind farm in Germany, demonstrating the two-way flow of capital and expertise.
Advanced technology is another focus area. Germany’s expertise in automation, artificial intelligence, and smart manufacturing aligns with the UAE’s vision for economic diversification and knowledge-based growth. Collaboration in these fields creates opportunities for joint ventures, technology transfer agreements, and training partnerships.
Transport infrastructure and smart mobility have also emerged as areas of mutual interest. Discussions have covered sustainable transport solutions, electric vehicles, and integrated supply chains.
Considerations for German Companies
The UAE business environment offers advantages for German companies, including a location connecting markets across the Gulf, Africa, and Asia, infrastructure, and a pro-business regulatory framework. However, successful establishment requires careful planning.
German companies can choose between UAE free zones and mainland jurisdictions, each with distinct benefits and restrictions. Selecting the proper jurisdiction depends on your business model, whether you plan to serve the UAE domestic market, operate regionally, or focus on international trade.
Understanding UAE corporate structures, tax regulations, and compliance requirements is essential, as is securing the right visa categories for your team.
Comprehensive UAE Business Solutions
Our German-speaking team has guided hundreds of businesses through the setup process, ensuring they get it right from the start and avoid the costly restructuring that can occur when companies attempt expansion without proper guidance.
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.
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- 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.
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