The UAE and Germany have strengthened their strategic economic partnership with a series of agreements spanning energy, industry, renewable power and advanced technology, with the deals potentially enabling more than €5 billion ($5.8 billion) in investment.
The agreements were signed during UAE President Sheikh
Mohamed bin Zayed Al Nahyan’s state visit to Germany and follow the UAE’s
announcement of €40 billion in intended long-term investment in the country.
They involve Abu Dhabi National Oil Company (ADNOC), XRG and
Abu Dhabi Future Energy Company Masdar, alongside German companies including
RWE, Securing Energy for Europe (SEFE), MB Energy, Covestro, Siemens Energy,
Siemens Industrial and Bosch Middle East.
The agreements were announced alongside the launch of the
UAE-Germany Investment Council, which aims to connect governments, investors
and companies to identify commercially viable opportunities, address investment
barriers and accelerate growth in priority sectors.
Dr Sultan Al Jaber, ADNOC Managing Director and Group CEO,
Executive Chairman of XRG, and Chairman of Masdar, said: “The UAE and Germany
are building on decades of trusted partnership to advance economic growth and
shared prosperity for the long-term. The additional €40 billon of intended
long-term investments announced this week, together with the agreements ADNOC,
XRG and Masdar signed today with our German partners, build on our investments
across Germany’s energy and industrial landscape and mark another step forward
in greater cooperation that will create new opportunities for both
countries.”
ADNOC and RWE Supply & Trading signed a Letter of Intent
to advance up to two long-term LNG sales and purchase agreements.
The companies will explore supplying LNG to Germany, Europe
and Asian markets from ADNOC Gas and XRG’s growing portfolio, with deliveries
expected to begin in the early 2030s.
ADNOC, XRG and SEFE also signed an MoU to explore
cooperation across the natural gas and LNG value chains, including supply,
infrastructure, logistics and portfolio optimisation.
In industrial chemicals, TA’ZIZ and Covestro signed an
agreement outlining next steps in their feasibility study for a world-scale
methylene diphenyl diisocyanate value chain in Ruwais.
Subject to the study, approvals and a final investment
decision, production could begin in the early 2030s.
Covestro, Fertiglobe and MB Energy separately agreed to
explore cooperation on low-carbon ammonia supply chains into Germany.
Renewable energy cooperation was also expanded, with Masdar
and RWE considering joint participation in future German offshore wind
auctions.
Masdar and German asset manager Luxcara will also explore
investments in offshore wind and battery storage projects in Germany and wider
Europe.
Meanwhile, ADNOC signed strategic collaboration agreements
with Bosch Middle East, Siemens Energy and Siemens Industrial to explore
cooperation in advanced technologies and artificial intelligence.
The latest agreements build on more than €20 billion already
invested by ADNOC, XRG and Masdar in Germany’s energy and industrial sectors.
These investments include XRG’s €14 billion acquisition of
Covestro and Masdar’s Baltic Eagle offshore wind project.
ADNOC also holds long-term LNG supply agreements for 1.6
million tonnes per annum into Germany, reinforcing the UAE’s role as a major
energy partner for Europe’s largest economy. -OGN/TradeArabia News Service
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