2026_Investing-in-Germany

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September 2026 English edition Europe’s largest economy Investing in Germany

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Deutschland.de – the magazine Contents r e n ß e G z t i r o M / ß u a r K a c s s e J © i A refinery unlike any other A Finnish company is producing innovative wood-based materials at Leuna Chemical Complex. p. 8 l o r e o g / k c o t S i © Hotspots for great ideas Germany has many strong regions to offer. A tour of its economic clusters – from Hamburg to Munich. p. 20 German workplace culture: a guide The dos and don’ts of doing business in Germany p. 52 2

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Contents, editorial Facts & Figures p. 4 Dear Readers, Five good reasons to choose Germany Why Germany is a great place to invest p. 6 They chose Germany Four companies from four regions of the world that have invested in Germany p. 14 A fresh start for an industrial nation The world’s third-largest economy offers numerous advantages as a business hub. p. 16 “Germany is especially attractive right now” An interview with Julia Braune, CEO of Germany Trade & Invest Your questions, answered The most important questions about investing in Germany p. 19 p. 36 At Leuna Chemical Complex, a facility unlike any other in the world is currently being brought online step by step: a biorefinery producing wood-based chemicals for use in a wide range of industries. It is an ambitious project being undertaken by Finnish company UPM to- gether with partners in Germany. Every day brings new challenges for which they seek – and find – solutions. M P U © Views on Germany as a business hub Five perspectives on Germany p. 38 A project for the future: the new biorefinery operated by Finnish company UPM Biochemicals at Leuna Chemical Complex Mainz is thinking big Researchers and biotech companies work particularly closely together here. “A lot of prejudices disappear once people get to know one another” An intercultural trainer talks about life as an expat in Germany. Imprint p. 44 p. 48 p. 54 In some ways, this unusual construction project could be seen as a metaphor for Germany as a whole: those who embrace new ap- proaches and turn setbacks into improvements will ultimately reap the rewards. It is no secret that the German economy has shown signs of weakness recently. At the same time, Germany is a highly innovative business hub, with an exceptionally skilled workforce, a secure legal framework – and policies providing fresh impetus. In this magazine, you can find out what Germany has to offer inter- national companies. We answer practical questions about investing in Germany and introduce other companies that – like UPM – have already taken the plunge. We also take you on a journey through Germany’s economic regions – from the Hamburg Metropolitan Re- gion and Silicon Saxony to the Greater Munich area. Best regards, the Editors 3

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Deutschland.de – the magazine & s t c a F s e r u g i F ↑ The German labour market 45.6 million people in employment 77.2% employment rate 34.8 million employees subject to social security contributions The number of people in employment in Germany has increased by 6.6%, from around 43 million in 2015 to almost 46 million in 2025. However, many people also work part-time: in 2025, they accounted for 31.9% of all employees. Source: Federal Statistical Office “Our country remains one of the world’s most attractive places to invest.” Federal Minister for Economic Affairs Katherina Reiche 20% Industry accounts for 20% of Germany’s gross value added – an above-average share by European stand- ards. Including construction and industry-related ser- vices, this rises to around 30%. Source: Destatis 4

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Facts & Figures “Germany is back. Investing in Germany is worthwhile again. We’re not an indus- trial location of the past, but a business and innovation hub for today – and, above all, for tomorrow.” Federal Chancellor Friedrich Merz, July 2025 Startup formation has reached record levels. 2 , 41 6 2 ,6 1 9 3,5 6 8 500 billion euros for Germany’s infrastructure 2019 2022 2025 The software sector has recorded the strongest abso- lute growth in startups, followed by the medical and food sectors. Source: German Startup Association Investment in roads, schools and railways: in March 2025, the Bundestag approved a 500-billion-euro special fund for this purpose. The aim here is to strengthen infra- structure, digitalisation and climate action while support- ing Germany’s transition to a sustainable, climate-neutral economy. This generational project is designed to run for 12 years. “We are now investing more than ever before in our country’s strength and future viability,” said Federal Minister of Finance Lars Klingbeil. Strong export per- formance: Germany is the world’s third- largest exporting nation, after China and the United States. German exports (million EUR) 1,193,555 1,206,928 951,959 1,563,788 2010 2015 2020 2025 Source: Federal Statistical Office 5

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Deutschland.de – the magazine Investment destination Five good reasons to choose Germany 1 Stable democracy Germany has enjoyed a stable democracy for decades. Changes of government take place in an orderly manner, while institutions function reliably – from Germany’s parliament, the Bundestag, to the financial supervisory authorities. For investors, this means predictable condi- tions, legal certainty and a political climate that rewards long-term commitment. In a world of growing uncertainty, that is no longer some- thing to be taken for granted, but a genuine competitive advantage. More about Germany’s political system ⟶ j o t o h p y a e u b / k c o t S l i © A reliable legal system Anyone establishing a business or a new site in Germany does so on a solid legal foundation. Contracts are enforce- able, property rights are protected and the courts are inde- pendent. Disputes are resolved fairly and within a reason- able timeframe, and Germany’s legal system is regarded internationally as one of the most dependable. Germany ranks sixth out of 143 countries in the World Justice Project’s 2025 Rule of Law Index. For foreign companies, that is more than just a detail: it is the foundation on which trust is built. More about safety and security in Germany ⟶ o b r u t r a / k c o t S i © 6 2

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Five good reasons to choose Germany Highly skilled workers Germany’s dual vocational training system is regarded as a model worldwide, combining theory and practice from day one, whether in the workshop of a family-run craft business or the development laboratory of a global corporation. The skilled workers trained in this way are able to apply their knowledge immediately in practice. They are complemented by outstanding, internationally connected universities and non-university research institutions such as the Fraunhofer and Max Planck institutes, which continuously produce new talent. More about skilled workers in Germany ⟶ a d a k N i / k c o t S i © 4 Compelling ideas Germany is a nation of innovators. With around 24,500 appli- cations filed with the European Patent Office in 2025, Ger- many ranks second behind the United States, ahead of Ja- pan and China. And good ideas often become successful businesses: universities and research institutions regularly produce spin-offs that transform research into marketable products. This is also reflected in the World Intellectual Property Organization’s Global Innovation Index 2025: seven of the world’s 100 leading innovation clusters are located in Germany: Munich, Berlin, Cologne, Stuttgart, Frankfurt am Main, Heidelberg/Mannheim and Hamburg. More about Germany’s research landscape ⟶ 7 3 A central location in Europe Nine neighbouring countries, a rail network spanning almost 38,000 kilometres, the world’s largest inland port in Duisburg and Europe’s leading freight airport in Frankfurt am Main: Germany lies at the heart of Europe and forms the logistical backbone of the entire region. Companies that manufacture or store goods here can reach almost every market on the continent within 24 hours. For companies with European am- bitions, that is a crucial advantage. More about Germany’s transport system ⟶ m v / k c o t S i © k u v i l a M l r a d n a s k e A / k c o t s r e t t u h S © 5

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Deutschland.de – the magazine A refinery unlike any other 8

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A refinery unlike any other Leuna Chemical Complex has a new refinery – but instead of crude oil, it processes wood. Finnish biotechnology com- pany UPM deliberately chose Germany for its bold industrial project. Text: Helen Sibum Photos: Jessica Krauß/Moritz Geßner A long tradition: Leuna in Saxony-Anhalt has been a major centre of the chemical industry ever since 1916. The world’s first wood-based biorefinery Over the past few years, UPM has built the world’s first biorefinery producing biochemicals from sus- tainably sourced hardwood in Leuna and is now putting it into operation step by step. The timber storage yard was needed to store locally sourced beechwood for the first stage of the process. Trains and lorries now arrive at the new storage yard every day, bringing timber from sustainably managed forests. At the refinery, the wood is turned into materials used in products including clothing, packaging and rubber products such as car tyres. Dermot Carey has overseen many construction projects at Leuna Chemical Complex, but even for him, a timber storage yard was a new challenge. Originally from Ireland, he has been employed for more than ten years at InfraLeuna, which oper- ates the chemical site in Saxony-Anhalt. As Head of Site Development, Carey goes to great lengths to meet the needs of companies setting up oper- ations in Leuna. How much electricity will the facility need, how much water, how much steam? Where is a road connection needed, where should access roads run, and what permits need to be obtained? Each of these points involve numerous contracts. In the case of the major investment by Finland’s UPM Biochemicals, they form “a master- piece”, Carey says with a laugh – one very thick book. 9

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Deutschland.de – the magazine Pioneers and partners: Harald Dialer, Executive Vice President, UPM Next Generation Renewables and Chief Technology Officer at UPM (left), with Dermot Carey of InfraLeuna, the company that operates the chemical site UPM has invested around 1.3 billion euros in the new facility, with the state of Saxony-Anhalt pro- viding 20 million euros in funding for the project. It is the largest investment at the long-established Leuna chemical site since the opening of the oil refinery operated by French energy company Elf Aquitaine (now TotalEnergies) in 1997. Environmental regulations provide investment certainty Why did Finnish company UPM choose Germany as the location for this major investment? “Ger- many is the European centre of the chemical industry and sustainable forestry,” says Harald Dialer, Executive Vice President, UPM Next Gener- ation Renewables and Chief Technology Officer at UPM. Another reason the company was willing to embark on the project was the growing impor- tance of sustainable products as major consumer brands pursue their sustainability strategies. One major incentive for the investment was demand for renewable ingredients in packaging and tex- tiles, and also in industrial products such as cars €20m in funding was provided for the project by the state of Saxony-Anhalt. and in the construction sector. The EU is currently working on regulations aimed at making products such as packaging and textiles more sustainable. These include discussions about introducing rules requiring a minimum proportion of bio-based solu- tions. “These regulations are essential if we are to actively shape the transition from fossil-based to renewable materials,” says Dialer. “Rules like these provide investment certainty and drive de- mand for precisely the products we manufacture in Leuna.” The biorefinery is what industry experts call a FOAK project – “first of a kind”. “Since there was no precedent for the project, we needed new solutions 10

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A refinery unlike any other Innovation from the forest: wood is the basis for the products created here through a series of pro- cessing stages. Responsible use of resources: the wood comes exclusively from sustainably managed forests. “Europe has the technology, expertise and political will to play a leading role in biochemicals.” Harald Dialer, Chief Technology Officer and Executive Vice President, UPM Next Generation Renewables on both the technical and regulatory sides,” says Dialer. Everyone involved was aware of this when the first talks between UPM and the Saxony-An- halt state government took place in 2018. But it was agreed that a project like this was something they could accomplish together. Construction of the facility was completed in 2024, and the first products have been manufactured there since the end of 2025. Alongside UPM itself and the state government, other partners also contributed to the project’s success: Saxony-Anhalt’s investment and marketing agency, which supported UPM in setting up operations there, and InfraLeuna, which oper- ates the chemical site. In constant dialogue In addition to the technical issues, InfraLeuna took care of permits and coordination with the rele vant authorities. “Right at the start, we brought all the relevant authorities and UPM together for what is known as a scoping meeting,” says Dermot Carey. “That made the requirements transparent for both sides.” In fact, close commu- nication is the most important thing of all on a project of this scale. Carey and his project man- agers supported the planning, construction and commissioning of the facility over a period of around seven years. There was plenty to discuss: the project included building a bridge over a railway line and InfraLeuna taking over operation of the timber storage yard – including the traffic management plan and the introduction of an IT system to document timber deliveries arriving by heavy goods vehicle. Waste- water was another complex issue. “UPM’s waste- water requires pre-treatment, so we built a spe- cial facility for this purpose, which is now in operation. That was something else we’d never had at the chemical site before,” says Carey. 11

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Deutschland.de – the magazine Staying flexible But not everything can be planned. Raisa Ver- masvuori is discovering that right now. Ver- masvuori is a chemical engineer who is respons- ible for innovation at Group level and for technology development at UPM Next Generation Renewables – the division that brings together UPM’s renewable fuels and biochemicals busi- nesses, including the refinery in Leuna. She and her team are supporting the commissioning of the biorefinery. “To be perfectly honest, when you build a facility that is the first ever of its kind in the world, you’re constantly learning.” For ex- ample, she and her team had carefully modelled how certain materials would flow through a pipe and used this to determine its precise diameter. “But once operations began, we found that the material behaved differently from how we’d ex- pected, so we had to replace the pipe.” That is why UPM is deliberately bringing the facil- ity into operation on a step-by-step basis. Once everything is up and running, “we will be produc- ing materials here that will transform entire Supporting the commis- sioning of the facility: Raisa Vermasvuori, Vice President Innovation at UPM Next Generation Renewables industries,” says Vermasvuori. “Among other things, we will produce a completely new material based on lignin, a component of wood.” This can be used as a filler in rubber products such as car tyres. Until now, carbon black has often been used instead, generating large quantities of CO2 during production. Another UPM product addresses a widespread problem in plastics recycling: many sorting The Leuna chemical site has seen more than 100 years of German industrial history: BASF established an ammonia plant there in 1916, and within a very short time what was then the village of Leuna became home to the world’s most advanced chemical plant. Ammonia was important for the production of explosives, which Germany used to inflict untold suffering during the First World War. Leuna also served Germany’s war effort during the Second World War as a supplier of synthetic petrol. While Germany was a divided country, the plant was nationalised and expanded. Tens of thousands of people worked there. Following the collapse of the German Democratic Republic (GDR), the plant was temporarily forced to close. French company Elf Aquitaine built an oil refinery in Leuna in the 1990s: today it produces one million litres of petrol and diesel per hour. Research is now also being conducted into sustainable fuels in Leuna: in 2012, the Fraunhofer Center for Chemical-Biotechnological Processes CBP opened a laboratory at the chemical site, and since 2023 Leuna has also been home to the Power-to-Liquid Fuels Technology Platform run by the German Aero- space Centre (DLR). More about Leuna as a chemical site ⟶ 12

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A refinery unlike any other “Here in Leuna, we’ll be producing materials that have the potential to transform entire industries.” Raisa Vermasvuori, Vice President Innovation and Next Generation Renewables Technology facilities cannot detect black plastic. As a result, it often fails to enter the recycling stream and is incinerated instead. UPM has developed a wood- based material that can be used as a black pig- ment without this problem. “We’re constantly look- ing for new applications for our products,” says Vermasvuori. In line with the High-Tech Agenda Harald Dialer believes Germany offers a good in- vestment climate for innovative companies such as UPM. “In my view, new technologies and prod- ucts remain one of the most important drivers of Germany’s economy,” he says. “In our sector in particular – the industrial bioeconomy – various programmes are available to support innovation.” Dialer was very impressed with the Federal Gov- ernment’s new High-Tech Agenda. “It addresses highly relevant fields for the future, such as sus- tainable, resource-efficient materials and solu- tions for decarbonisation.” He believes the road- maps for implementing the agenda, presented in May 2026, are an excellent fit with UPM’s plans. To drive innovation, UPM has established its own research and development department in Leuna as part of Raisa Vermasvuori’s team. Vermasvuori says that partnerships have also been estab- lished with numerous universities and research in- stitutions in the region. “We’re currently pursuing joint research projects with Martin Luther Univer- sity Halle-Wittenberg, the Fraunhofer Center for Chemical-Biotechnological Processes and Anhalt University of Applied Sciences, to name just a few.” Watch the video Part of the transformation: in Leuna, UPM produces a new wood-based material that can be used in products such as tyres. 13

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Deutschland.de – the magazine They chose Germany too India, the USA, Egypt, Brazil – four companies from four countries share their experiences of investing in Germany. Indian automotive parts from Saxony-Anhalt The lake that gave the town of Seeland its name no longer exists. Formed by melt- water from the last Ice Age thousands of years ago, it later dried up. People here once made their living from fishing; today, one of the largest employers in this Saxony-Anhalt town is an automotive supplier: LMG Manufacturing, a subsidiary of India’s Jaya Hind Industries. The aluminium specialist produces lightweight components for vehicle manufacturers. In 2024, it opened a production facility in Seeland after just ten months of construction. “75 years of German-Indian partnership and the technical expertise of parent company Jaya Hind Industries, with its strong vertical integration of technologies, are taking LMG into the future of electric mobility,” said Prasan Firodia, Managing Director of Jaya Hind Industries, at the opening. Sovereign AI for German industry Just six months passed between the announcement and the start of operations: the Industrial AI Cloud in Munich was created in record time. Nvidia CEO Jensen Huang unveiled the plans in June 2025, and the AI factory went into operation in November 2025. It is designed to give European industrial companies access to secure computing resources so they can integrate AI in their machinery and systems. “With its industrial heritage, wealth of relevant data and unique companies, Germany is the ideal location for this,” says Michael Unger. At Nvidia, he is responsible for strategic initiatives relating to sovereign AI in Central Europe. To make the project a reality, the US AI company entered into a partnership with Deutsche Telekom. “At Nvidia, we contributed our expertise in rapidly scaling AI infrastructure,” says Unger. “Deutsche Telekom operates the cloud.” It was pos- sible to implement the project so quickly because the partners upgraded an ex- isting data centre rather than building a new one. Munich was chosen not only because of the suitable data centre, but also because of its ecosystem of com- panies such as Siemens and ambitious start-ups. “The city also offers a first- class academic environment,” says Unger. The Industrial AI Cloud is not Nvidia’s first investment in Germany. The company has its German headquarters near Aachen, while numerous development teams are based in Berlin. In Munich, the company develops technology for applications including autonomous driving. 14 Jaya Hind Industries → Founded in 1947 → More than 4,000 em- ployees worldwide → Headquarters: Pune, India Nvidia → Founded in 1993 → 42,000 employees worldwide → Headquarters: Santa Clara, USA i n o m S n e v S / e c n a i l l i a e r u t c p ©

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Elaraby Group → Founded in 1964 → More than 36,000 employees worldwide → Headquarters: Cairo, Egypt Prática → Founded in 1991 → More than 750 employees worldwide → Headquarters: Pouso Alegre, Brazil y b a r a E © l They chose Germany too From Cairo to Leipzig Germany or Japan – those were the options for the company’s new location. “We value quality,” says Marwan Elkott, Managing Director of Elaraby Germany. The Egyptian company, which sells household appliances and consumer electronics, opened its European headquarters in Leipzig in 2024. Why did Germany win out? Elkott knew the country from visits to the International Radio Exhibition in Berlin and values German technology, the stable economy and the culture. And an opportunity arose to buy a German company: Based in Falken- berg in Brandenburg, Heller manufactures household appliances. Elaraby acquired its brand and factory in 2024. Elkott considers it a success story, not least thanks to the support of the Leipzig Invest economic development agency, for which he is very grateful. But as with any investment, there were – and still are – challenges to overcome. One of them: a shortage of workers. Elkott says it is difficult to find staff for the factory. He has since hired employees from Poland and Ukraine, although he would prefer to em- ploy people from the local area. “We want to be a German company – not just in terms of the brand, but also in terms of production and craftsmanship.” But Elkott still firmly believes that Germany is the right location, and he has made a personal commitment to his new role: he has moved his entire family from Cairo to Leipzig. “Germany is a little piece of heaven,” he says. “All the greenery, the peace and quiet – we don’t have that back home.” A smooth start at Cologne’s Brazil Business Center Chile, the USA, Germany: these are the international locations of Brazilian com- pany Prática. It has had its European headquarters in Cologne since 2025 and distributes its products across the continent from there. The company manufac- tures high-speed ovens for bakeries and the catering industry. They can be used to prepare pre-baked and frozen foods in a short space of time. “We chose Germany because we already had an established presence here,” says Vinícius Rezende, Director of International Expansion at Prática. “It is also particu- larly well located in terms of both logistics and geography.” The entire process went smoothly, Rezende says. One reason was that Prática enlisted the support of a consultancy specialising in helping Brazilian companies set up operations in Ger- many. The Brazil Business Center Cologne has been operating since 2013 – and the fact that it is located in that city is no coincidence: the city in the Rhineland has close ties with Brazil, including in business. Cologne hosted the first Ger- man-Brazilian Business Days in 2008, and the event has been a regular fixture there ever since. Working with BBCC was key to the company’s success, Rezende says. His advice to other investors: “Find a local partner who speaks German and understands the local regulations.” 15

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Deutschland.de – the magazine Germany: a land of opportunity A fresh start for an industrial nation The world’s third-largest economy offers numerous advantages to international companies looking to invest, produce and grow at the heart of Europe. Germany is Europe’s largest economy and the third largest in the world after the USA and China. Its economic strength rests on a broad industrial base, innovative companies, high-performing research institutions and close integration into European and global markets. The Federal Government is responding with comprehensive reforms to the current period of weak growth, which is due in part to geopolitical conflicts, uncertain supply chains, trade barriers and high energy costs. Reforms send out a signal Germany aims to drive innovation, cut red tape, speed up procedures, ease the burden on businesses and consumers, boost investment and attract fresh capital from abroad. As the Federal Chancellor’s Personal Representative for Invest- ment, former Commerzbank CEO Martin Blessing is tasked with opening doors and making Germany even more attract- ive as a place to invest. Blessing is also Chairman of the Supervisory Board of Germany Trade & Invest (GTAI), the Federal Government’s economic development agency which supports foreign companies investing in Germany. Excellent conditions International investors benefit from numerous advantages: Germany offers a deep industrial base, cutting-edge re- search, a highly skilled workforce, a reliable legal framework and direct access to the EU single market – with around 450 million people, 26 million companies and the free movement of goods, services, capital and labour. Another advantage for foreign companies setting up oper- ations in Germany is the growing number of European Union (EU) trade agreements with countries and regions outside Europe, which significantly reduce tariffs and other barriers to trade. The EU free trade agreement with India, concluded in January 2026, for example, gives European industry easier access to the world’s most populous market. In South America, the EU-Mercosur agreement has estab- lished new rules since May 2026 for an economic area of around 700 million people. It reduces trade barriers and fa- cilitates access to critical raw materials. European trade pol- icy is gaining momentum in Southeast Asia, too: the EU has 16

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A fresh start for an industrial nation 17 d e t a r e n e g - I A , t s 3 ©

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Deutschland.de – the magazine made progress on an agreement with Indonesia, negoti- ations are under way with Thailand, the Philippines and Ma- laysia, and agreements are already in place with Singapore and Vietnam. Strong foundations Another advantage is the proximity to established clusters and emerging start-ups in Germany. The automotive, mech- anical engineering and robotics industries are concentrated in Baden-Württemberg and Bavaria; North Rhine-Westphalia is strong in chemicals, materials and energy technology; Berlin, Munich and the Rhine-Main-Neckar region are among the leading life sciences hubs; and “Silicon Saxony” around Dresden is Europe’s largest semiconductor cluster. A dense network of motorways, railways, inland waterways, seaports and international airports connects Germany’s in- dustrial centres with European and global markets. With a major investment drive, the Federal Government aims to fur- ther improve infrastructure and accelerate digitalisation over the coming years. There are also numerous European, na- tional and regional funding programmes, tax incentives and subsidies designed to encourage investment in Germany and strengthen innovation. Capital for transformation One of the instruments being used to leverage investment is the so-called Germany Fund. The Federal Government and state-owned development bank KfW are providing around 30 billion euros in public funding and guarantees with the aim of mobilising a total of 130 billion euros in additional in- vestment. The purpose of the fund is to mobilise private capital – for industry, SMEs and start-ups. The focus is on fields of the future such as deep tech, AI, biotechnology and defence, as well as the resilience of critical supply chains. The Made for Germany initiative, founded in 2025, also has an important role to play and sees itself as a bridge between business and government. More than 130 companies belong to the initiative: together, they plan to invest more than 800 billion euros in Germany by 2028. Another pillar is the Federal Government’s High-Tech Agenda, focusing research and innovation policy on six key technolo- gies: artificial intelligence (AI), quantum technologies, micro- electronics, biotechnology, fusion and climate-neutral energy generation, and climate-neutral mobility. Research is to boost competitiveness, create value and strengthen techno- logical sovereignty, while ideas are to be turned into reality and scaled up more quickly. Expanding digital infrastructure Experts see particularly strong opportunities for Germany in AI if industrial data, mechanical engineering expertise, ro- botics, automation and software development can be brought together. AI is increasingly being used in factories, laboratories, hospitals, energy grids and mobility systems. In parallel, Germany is significantly expanding its digital infra- structure. By 2030, the IT power capacity of German data centres is set to double compared with 2025, while capacity for high-performance computing and AI is to increase at least fourfold. One thing is certain: Germany has enormous potential. What has been lacking recently is speed and impact. This is pre- cisely where the Federal Government is now taking action, with a clear focus on growth, innovation and investment. International partners are warmly invited to help shape this development. Germany offers unique opportunities to start a business and make it a success. 18

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“Germany is especially attractive right now” “Germany is especially attractive right now” Skilled workforce, research, infrastructure: Germany attracts investors with its many strengths, stresses Julia Braune, CEO of Germany Trade & Invest. Ms Braune, in 2025 you published a study of Germany as a business hub from the perspective of foreign com- panies. What are its most important findings? First of all, it’s encouraging that Germany continues to be seen as a strong, stable and innovative location for business. Infrastructure, conditions for production, our research land- scape and the highly skilled workforce were rated particular- ly positively. At the same time, high costs in some areas and, in places, complex regulation and bureaucracy are notice- ably affecting Germany’s image as a business location. What are Germany’s strengths compared with other countries? Germany stands out as a business hub thanks to its highly skilled workforce and highly innovative research network, which is closely integrated with industry – as reflected in the large number of patent applications, for example. Alongside political and legal stability and good infrastructure, Ger- many’s size as an attractive market and its central location in Europe are undoubtedly major advantages. Many companies use Germany as a base from which to tap into other markets within the EU. Why is now a particularly good time for companies to come to Germany? Germany is especially attractive right now because the Fed- eral Government is introducing tax incentives for investment through its growth booster, pushing ahead with major indus- trial and technology programmes under the High-Tech Agen- da and at the same time opening up new trade opportunities that are creating demand and market access in the short term – for example through the EU-Mercosur free trade agreement and the agreement with India. This combination of financial incentives, a clear industrial policy and demand driven by geopolitical factors makes investing in Germany particularly promising right now. What challenges does Germany need to address to remain attractive? While Germany has a number of advantages that help it compete internationally, we need to do everything we can to ensure that the country remains an attractive location for foreign companies in the future. To achieve this, the reforms initiated by the Federal Government need to be implemented quickly and consistently – whether in digitalisation, cutting red tape or making Germany’s cost structures more competitive. Germany Trade & Invest (GTAI) ⟶ e i f a r g o t o F - k c e b s s o V - g n i l l I / I A T G © 19

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Deutschland.de – the magazine Hamburg metro- politan region Rhine-Ruhr Berlin– Brandenburg Silicon Saxony Frankfurt- RheinMain Stuttgart metro- politan region 20 Munich metropolitan region

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Hotspots for great ideas Hotspots for great ideas Germany’s strength lies in its dynamic regions – whether Silicon Saxony with its semiconductor indus- try, the Stuttgart region with its world-renowned high- tech companies or FrankfurtRheinMain, home to Germany’s chemical industry. A tour of some of the country’s leading business hotspots. 21

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Deutschland.de – the magazine Europe’s largest microelectronics hub Silicon Saxony One in every three chips produced in Europe is “made in Saxony”. In recent years, the state of Saxony, with its major cities of Dresden, Jena and Leipzig, has developed into “Silicon Saxony”, Europe’s largest hub for IT, information techno- logy and microelectronics, ranking fifth worldwide. Together with GlobalFoundries from the United States and X-Fab from Belgium – and, from 2027, TSMC from Taiwan – German companies such as Bosch, Infineon and Jenoptik operate some of the world’s most advanced semiconductor fabrication plants in Dresden. As recently as July 2026, In- fineon opened a Smart Power Fab for power semi- conductors in Dresden – a 5-billion-euro investment. i s n V r i i l m d a V / k c o t S Germany’s “Flor- ence on the Elbe”: Dresden is one of the capitals of Sili- con Saxony. i © 22 i s o d u t s a z u l / k c o t S i © Why are more chip manufacturers concentrated here than anywhere else in the world? One reason lies in the region’s history: expertise and compa- nies in the sector began to cluster here as early as the 1960s. In recent years, a highly innovative and integrated ecosystem has also emerged. Sup- pliers such as Taiwan’s Marketech International Corporation and Taiwan Puritic Corporation, Ja- pan’s Kurita Water Industries and Finland’s Chip- metrics Oy – to name just a few – ensure that the region brings together every stage of the micro- electronics and ICT value chain. That is unique. The region also boasts a dynamic startup ecosys- tem: Startups such as Wandelbots (AI robot pro- gramming), Sunfire (hydrogen), online retailer Bike24 and Saxon Q (mobile quantum computers) demonstrate the diversity of Silicon Saxony. Staff- base (AI employee experience), eastern Ger- many’s first unicorn, is also part of the ecosystem. Companies in fields such as radiopharmaceuti- cals, defence tech, biotech and physical AI all benefit from this entrepreneurial spirit. Initiatives such as the Startup Factory boOst help bring in- novations from academia and research to market. Four renowned universities drive research for- ward: TU Dresden, a University of Excellence, Chemnitz University of Technology, TU Bergaka- demie Freiberg and Leipzig University. The state also supports the training of skilled workers with creative initiatives. For example, a new campus is being established in Dresden that will, for the first time, offer Germany’s internation- ally acclaimed dual vocational training system in English. More about the region ⟶

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Hotspots for great ideas e s h o L t r e b o R © “Silicon Saxony stands for the unique combination of outstand- ing research, Europe’s largest microelectronics cluster and a highly dynamic environment for deep-tech startups.” Professor Ursula M. Staudinger, Rector of TU Dresden Researching for tomorrow: four renowned universities are driving innovation forward. Fast and pragmatic While approval procedures can take years elsewhere, Saxony has cut red tape. TSMC has benefited from this, for example. State aid for the com- pany’s new semiconductor plant was approved swiftly. GlobalFoundries and the Japanese company TDDK also received key approvals within just a few months. This is made pos- sible by efficient coordination be- tween the state government and regional authorities. r e h s e n y k s / k c o t S i ©

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Deutschland.de – the magazine Where high tech meets lifestyle Berlin-Brandenburg Berlin-Brandenburg is regarded as one of Ger- many’s most innovative and creative regions. In 2025 alone, 619 startups were founded in Berlin and a further 73 in Brandenburg. One in every three AI startups and one in every five German green tech startups is based here. Berlin also has a strong industrial heritage: com- panies such as Borsig, Siemens and AEG played a key role in Germany’s industrialisation. The region remains highly dynamic today, with its GDP grow- ing faster than that of most other German states. One reason is that many international investors and major companies are investing in Berlin- Brandenburg, including the Dutch semiconductor company ASML, the carmaker Tesla with its only European factory, Google with its AI centre and AWS with its European cloud infrastructure. Berlin – constantly reinventing itself: here, history and the future go hand in hand. Germany’s creative heart: the region is renowned for its culture of innovation. a r t r o P / k c o t S i © German companies, too, are investing heavily in the region. Siemens is a case in point: the compa- ny is investing 750 million euros in Siemensstadt Square, a site that brings together startups, re- search laboratories and high-tech manufacturing facilities. The former Berlin Tegel Airport is being transformed into “Urban Tech Republic”, a science and industrial park where companies, research in- stitutes and startups are developing future tech- nologies in fields including energy, mobility and IT. A successful model for this kind of collaboration already exists: Berlin-Adlershof, Germany’s largest science and technology park. G U k c o t S h g H y F / k c o t S i l i © 24

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Hotspots for great ideas Its close proximity to the Federal Government, ministries and 159 embassies helps speed up de- cision-making processes. Companies also benefit from an outstanding research landscape: seven universities, 50 higher education institutions and countless research institutes provide a steady stream of highly qualified talent – all in one of Europe’s most vibrant metropolitan centres. “Edu- cation in Berlin is world-class,” write the econo- mists behind the Global Cities Index in London. Not to mention Berlin’s unique way of life, which attracts and delights around 12 million visitors from across the globe every year with its wealth of attractions and vibrant bar and club scene. Many come to stay: almost one in four founders in Berlin has a migrant background. More about the region ⟶ Startup capital With 619 new startups founded in 2025, Berlin leads the German rankings. With around 2.7 billion euros invested, almost one euro in every three invested in German startups in 2025 went to the capital. A launchpad for startups: the former Berlin Tegel Airport is being transformed into “Urban Tech Republic”, a science and industrial park. i s e g a m I - e n n o P _ H b m G t n e m e g a n a M L X T n i l r e B © 25

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Deutschland.de – the magazine e h c s n a H S / k c o t S i © At the heart of Europe’s financial flows Frankfurt RheinMain 26

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Hotspots for great ideas y r o t c a F n u B t e e w S / k c o t S i © 8.3% of Germany’s gross value added is generated in FrankfurtRheinMain. This is where financial flows converge, markets are shaped, risks are assessed and decisions about the future are made: Frankfurt am Main is home to the European Central Bank, Deutsche Börse and numerous German and European regu- latory authorities. Together with countless finan- cial service providers and major consulting firms, the FrankfurtRheinMain metropolitan region forms one of Europe’s leading fintech communities, em- ploying more than 120,000 people – more than any other financial centre on the continent. With a population of 5.8 million, the region com- prises 18 districts and seven independent cities across Bavaria, Hesse and Rhineland-Palatinate. It is home to major industries: the chemical sector, rooted in Hoechst; mechanical engineering, shaped by pioneers such as Max Braun; and the automotive industry, with established brands such as Opel alongside newer players including Chery Europe, Kia and Hyundai. Alongside global corpo- rations, numerous medium-sized hidden champi- ons also shape the region’s economy. The region is particularly strong in the life sciences, with companies such as Eli Lilly, Merck, Boehringer In- gelheim and Biontech continually investing in their local operations. Europe’s digital heart Frankfurt is also Europe’s digital heart: for the past 30 years, the city has been home to DE-CIX, the world’s largest commercial internet exchange. Almost one third of Ger- many’s data centres have been es- tablished in the surrounding area, with more to follow – including Google facilities in Dietzenbach and Hanau. FrankfurtRheinMain is an industrial power- house that is constantly reinventing itself. Thanks to its central location, FrankfurtRheinMain is one of Europe’s most important transport hubs. All of Western Europe’s major economic regions can be reached within four hours, while direct flights connect Frankfurt with 95 countries. So it’s hardly surprising that more than one in four com- panies in the region has an international background. The close integration of manufacturing and ser- vice industries has created a dense “industrial network” employing almost one in every two people in the region. Additional networking initia- tives further strengthen the region as a business location. The Rhine-Main-Neckar Software Clus- ter, for example, has become one of the world’s leading centres for ICT and high-tech industries. Incubators run by major players such as Deutsche Börse and Deutsche Bank support new ventures, backed by an exceptional research and innov- ation landscape. The result: a total of 177 new startups were established in the region in 2025, many of them fintech companies. They are help- ing to further strengthen the region’s position as continental Europe’s leading financial centre. With the startup and innovation centre Futury in Frank- furt, the region’s entrepreneurial ecosystem is gaining a new engine room where talent, research, industry and capital come together – particularly in the field of AI. More about the region ⟶ 27

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Deutschland.de – the magazine From BMW to OpenAI Munich metropolitan region f f o k n e d o r o g / k c o t S i © Where blue-chip business meets quality of life: eight of the 40 DAX-listed companies, including BMW, Siemens and Allianz, are headquartered in Munich – more than in any other German city. But it is the region’s 93,000 businesses, emerging high-tech companies and outstanding research institutions that create Munich’s distinctive mix in the so-called Isar Valley. The Munich metropolitan region extends across large parts of southern Bavaria: it comprises the state capital Munich, 27 districts and six cities, in- cluding Augsburg, Ingolstadt and Landshut. More than six million people live in the region, generat- ing a gross domestic product of almost 420 billion euros in 2023. The information and communica- tions sector is particularly dynamic and has de- veloped into one of the region’s key industries alongside the automotive sector and financial ser- vices. This is why Munich ranked as Germany’s smartest city in the 2025 Smart City Index. Global players such as AWS, Google, IBM Watson, Infineon, Microsoft and Apple are continuing to expand their presence. OpenAI and the Chinese technology company TikTok have also had operations in the city since 2025. Deutsche Tele- kom, SAP and Nvidia are also investing heavily in the development of high-performance AI infrastructure. Germany’s startup capital: Munich is home to around 2,500 startups. The IEC: unique in Europe LMU Munich is one of Germany’s leading univer- sities. With its LMU Innovation & Entrepreneur- ship Center (IEC), it serves as a hub for startups and is regarded across Europe as a model for linking academia and industry. The IEC helps founders turn innovative ideas into mar- ket-ready business models. Its focus is on deep tech, AI and the life sciences. Thanks to its strong network of investors, mentors and indus- try partners, founders gain access to funding, strategic advice, prototyping resources and global markets. 28

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Hotspots for great ideas 43.1% of employees in the Munich metropolitan region have a university degree. The average across Germany is 20.5%. y l i t o j / o t o h p k c o t S i © Another flagship sector is the aerospace cluster, which includes the German Aerospace Center and Airbus’s German headquarters. The defence in- dustry is also showing renewed strength, with a wide range of companies now based here. Munich is also Germany’s leading city for startup activity. The city is currently home to almost 2,500 startups. Unicorns such as Helsing, Quan- tum Systems and Celonis reinforce the reputation of the Isar Valley. This is supported by a dynamic network of investors, mentors, research institutes, more than 25 higher education institutions and academies, as well as leading universities: LMU Munich and the Technical University of Munich perform exceptionally well in international rankings. Yet Bavaria’s capital is renowned not only as a centre for business and knowledge, but also for its outstanding quality of life: Its architecture, cul- ture, parks, lakes, the nearby Alps and, not least, make Munich one of Germany’s most beautiful and popular cities. Football also plays its part: with 432,500 members, the legendary Bayern Munich is the world’s largest sports club by membership. More about the region ⟶ The Munich lifestyle: the city is surrounded by stunning natural scenery. “The Munich business region offers a re- markable combination of outstanding edu- cational and research institutions, a diverse business landscape and a dynamic startup ecosystem.” Dr Christian Scharpf, Head of the Department of Labour and Economic Development, City of Munich r e d ö R z t i r o M © 29

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Deutschland.de – the magazine l o r e o g / k c o t S i © Powered by the elements Hamburg metropolitan region Energy and industry shape one of Germany’s most dynamic business locations: the Hamburg metro- politan region. It comprises the Free and Hanse- atic City of Hamburg together with 20 districts and independent cities in Schleswig-Holstein, Lower Saxony and Mecklenburg-Western Pomer- ania – stretching from the North Sea coast to the Baltic Sea and far inland. In 2023, the Hamburg metropolitan region’s population of around 5.5 mil- lion generated a gross domestic product of ap- proximately 291 billion euros. The River Elbe is the lifeblood of the entire region. It enables global supply chains for companies such as Airbus, Blohm+Voss and Aurubis. The Port of Hamburg – Germany’s largest seaport and Europe’s third-largest container port – is a key hub within an infrastructure network spanning the continent. It is home to a major maritime logistics community and a growing number of startups de- veloping AI-powered solutions. The region has traditionally been strong in the chemical industry and mechanical engineering. Global companies such as Dow are based at the ChemCoast Park in Stade. In Lübeck, companies such as Euroimmun and Dräger work closely with life sciences research institutions. ChemCoast Park Brunsbüttel is one of the largest industrial estates in northern Germany. 30

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g r u b m a H i l e z n a k s t a n e S © Hotspots for great ideas “The Hamburg metropolitan region is de- fined by short distances, rapid decision-mak- ing and close partnerships between business, academia and practitioners. It is precisely this that creates the momentum that gives inves- tors confidence and clear direction.” Dr Melanie Leonhard, Senator for Economic Affairs, Labour and Innovation Artificial Intelligence complement the ecosystem. Hamburg now ranks third in Germany for startup funding rounds. The foundation of the metropolitan region’s suc- cess is its talented workforce, supported by more than 40 universities, higher education institutions and research organisations. It is therefore no sur- prise that IW Cologne ranked Hamburg as Ger- many’s most attractive city in 2023 in the categor- ies of renewable energy, availability of skilled workers, digitalisation and transport infrastructure. Startup scene on the rise With 1,540 active startups, Hamburg has a re- markably dynamic startup ecosystem. In 2025 alone, 203 new startups were established, repre- senting an increase of 26% compared with the previous year. The green tech sector is particularly strong: 22% of Hamburg’s startups operate in this field (com- pared with 16% nationwide). The city’s internation- al outlook is equally impressive: 21% of founders were born outside Germany (nationwide: 13%). More about the region ⟶ But the Hamburg metropolitan region also excels in other areas, including as a centre of the aero- space industry. It is home to research institutions such as the German Aerospace Center and the Fraunhofer Institute for Manufacturing Technol- ogy and Advanced Materials in the so-called CFK Valley in Stade. CFK stands for carbon fibre-rein- forced plastics; CFK Valley focuses on lightweight, exceptionally strong composite materials used, among other things, in aircraft construction. Ham- burg is also one of Europe’s leading centres for media, IT and the creative industries, with more than 110,000 people employed by 25,000 companies. It is also home to a vibrant startup ecosystem: one quarter of all new startups focus on AI. Insti- tutions such as the Artificial Intelligence Center Hamburg, established companies, the University of Hamburg and the German Research Center for 27,000 laser pulses per second are generated by the world’s larg- est and most powerful X-ray laser. At the European XFEL in Hamburg and Schleswig-Holstein, researchers are able to observe the atomic structure of viruses, cells, chemical re- actions and materials. This is particularly beneficial for structural biology, chemistry and materials science. 31

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Deutschland.de – the magazine A remarkable transformation Rhine-Ruhr Few regions have undergone such dynamic trans- formation in recent decades as the Rhine-Ruhr metropolitan region. With a population of more than ten million, it is Germany’s most populous re- gion. As the cradle of German industrialisation, it made a major contribution to the country’s pros- perity. Even today, it accounts for 5% of Ger- many’s gross domestic product. The steel, mining and automotive industries have created a dense network of logistics centres, s t r e s / k c o t S i © Coal and steel laid the foundations for the Ruhr region’s industrial strength – today, it is reinventing itself. Left: Duisburg’s Inner Harbour, now a popular leisure and entertainment district 2.2 billion euros is the gross value added generated by the more than 200 companies and over 21,000 employees at TechnologieZentrumDortmund. The technol- ogy park is one of the largest in Europe and a prime example of the region’s dynamic develop- ment. Here, businesses and researchers collab- orate in biomedicine and biotechnology, produc- tion technology, micro- and nanotechnology, logistics, software and IT. 32 l o r e o g / k c o t S i ©

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Hotspots for great ideas commercial property and outstanding transport infrastructure. Motorways, rail links and two inter- national airports keep the region moving. The Rhine is Europe’s most important inland waterway, while Duisburg is home to the continent’s largest inland port – from here, freight trains travel to Chi- na via the “New Silk Road”. Within a radius of 500 kilometres, the region has access to a market of 160 million people. New industrial sectors, a growing startup ecosys- tem, outstanding research and strong business development support make the region highly at- tractive. More than 24,000 foreign companies have established operations here – one fifth of all international businesses in Germany – including the Dutch chemicals group LyondellBasell, the Es- tonian food manufacturer Tactical Solutions and the US fuel cell manufacturer Cummins. Almost two dozen technology and startup centres bring business and academia together, particular- ly in deep tech, green tech, resource efficiency, cybersecurity, logistics and healthcare. Dortmund, Bochum, Cologne and Düsseldorf have emerged as leading startup cities. Startups such as A knowledge region with a future In just a few decades, the Rhine-Ruhr region has developed into one of Eur- ope’s leading centres of knowledge and innovation. Today, it is home to 22 higher education institutions offering around 400 degree programmes, as well as one of the highest concentrations of re- search institutes anywhere. They are de- veloping tomorrow’s solutions – from IT security, AI and cybersecurity to digital health and green steel. “Transformation is part of our DNA. As a region with a long industrial tradition, we are constantly re- inventing ourselves and actively driving the transition to a climate- neutral economy. With the goal of becoming Europe’s first climate- neutral industrial region by 2045, we offer companies outstanding prospects for sustainable growth and long-term success.” Felix Neugart, CEO of NRW.Global Business GmbH Schüttflix, Metalshub and FibreCoat demonstrate how German entrepreneurs are reinventing trad- itional industries: They are digitalising construction logistics and raw materials trading while develop- ing new high-performance materials for mobility, energy and industry. The Rhine-Ruhr metropolitan region has succeeded in transforming its indus trial heritage into enormous potential for the future. The region also benefits from a diverse and open society: Cologne, for example, is home to a large Chinese community, while Düsseldorf has a large Japanese community. More about the region ⟶ 33

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Deutschland.de – the magazine Global players, hidden champions and startups Stuttgart metropolitan region value added, equivalent to 4.3% of Germany’s to- tal. Almost one third of all employees work in manufacturing. The region is home to major cor- porations as well as medium-sized hidden cham- pions – from Porsche, Thales and Bosch to Mahle, Kärcher, Trumpf and Festo. The automobile was born in Stuttgart – at least Mercedes-Benz claims credit for its invention in 1886. Since then, one of the world’s most powerful automotive clusters has developed in south-west Germany. More than 220,000 people are em- ployed in this sector. Thanks to its innovative strength, the metropolitan area is regarded as a technological powerhouse on the River Neckar, while its abundant natural surroundings and rich cultural life contribute to an exceptional quality of life. The Stuttgart metropolitan region comprises the state capital of Baden-Württemberg and five sur- rounding districts, with a population of around 2.8 million people from more than 170 nations. To- gether, they generate 151 billion euros in gross This industrial DNA has given the region excep- tional expertise in key fields including deep tech, production technology, robotics, mobility, environ- mental technologies and sustainable construction. The region also plays a leading role in developing future-proof energy solutions based on battery technology, fuel cells and hydrogen. Strong industry clusters provide the foundation for new areas of growth, particularly in digitalisation, with AI startups becoming increasingly important. This is also thanks to the region’s renowned re- search landscape, highly educated workforce and strong culture of openness. Baden-Württemberg 36%of Germany’s more than 42,000 patent applica- tions in 2025 came from Baden-Württemberg, placing the state first ahead of Bavaria. 34 i i i g n i r e e n g n E s s h T / h s a p s n U © l

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Hotspots for great ideas “The Stuttgart metropolitan region is one of Eur ope’s strongest business locations. It is home to world- renowned companies such as Mercedes-Benz, Bosch, Stihl, Trumpf and IBM. As a high-tech location, the region boasts an outstanding higher education land- scape and research infrastructure. It is also one of Germany’s leaders in patent applications.” Michael Kaiser, CEO of Stuttgart Region Economic Development Corporation is also home to a thriving cultural and creative in- dustries sector employing 192,000 people. This combination makes the region a vibrant place to do business. Education is a winning asset Almost 90% of the region’s 1.5 million employees hold a recognised vocational or professional qualification. Compared with other locations, this is an exceptionally high proportion. The academic network includes 22 higher education institutions and universities, two Max Planck Institutes, eight Fraunhofer Institutes, the Cyber Valley AI Innov- ation Campus and a Centre for Solar Energy and Hydrogen Research. These are complemented by numerous private-sector research and develop- ment centres, as well as a wide range of regional centres of expertise and innovation. More about the region ⟶ Stuttgart from above: view of the city nestled in a valley basin 35 x u D n o m S / k c o t S i i ©

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Deutschland.de – the magazine 2 1 Your questions, answered FA Foreign companies wishing to establish them- selves on the German market require a legal busi- ness structure. The most common options are a subsidiary or a branch office. The GmbH is par- ticularly popular: as an independent limited liabil- ity company, it offers flexibility while keeping ad- ministrative obligations manageable. A branch office, by contrast, remains organisationally part of the foreign parent company, with varying de- grees of autonomy. Setting up a GmbH is relative- ly straightforward and can be completed in just a few steps. Anyone wishing to establish a successful business in Germany should prepare carefully. Founders from non-EU countries generally require a resi- dence permit for self-employed or freelance work under Section 21 of the German Residence Act. If they are able to support themselves through their business activity, the residence permit, initially granted for three years, is extended. After five years, they become eligible for a permanent set- tlement permit allowing them to remain in Ger- many indefinitely. More about visas and residence permits ⟶ More about setting up a GmbH ⟶ I already have a company and would like to establish a branch in Germany. What do I need to consider? I would like to set up a company in Germany. Do I need a visa? 36

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AQ3 Germany offers a competitive corporate tax sys- tem. The average corporate tax burden is around 30%, although many municipalities offer combined tax rates of less than 25%. All corporations – limit- ed liability companies (GmbHs), public limited companies (AGs) and German branches of foreign companies – are subject to corporation tax, a form of income tax for companies. In addition, com- panies pay the solidarity surcharge and trade tax. While corporation tax and the solidarity surcharge are standardised nationwide, trade tax rates are set by individual municipalities. Germany offers investors a wide range of funding opportunities. These include financial support, skills development programmes and incentives for research and development. The support available depends on factors such as company size, invest- ment location and sector. A large proportion of these programmes is financed by the European Union. In addition, funding is provided by both the German federal government and the individual federal states. 4 More about corporate taxation in Germany ⟶ Are there funding programmes for How are companies taxed in investors? Germany? Your questions, answered More about funding programmes ⟶ 37

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Deutschland.de – the magazine We have a question about Germany as a business location Several, in fact. Answers from the Federal Chancellor’s Personal Repre- sentative for Investment, an Iranian start-up founder, an Indian investor, the head of a city economic development agency and a representative of an organisation advising Korean companies in Germany. 38

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Views Mr Blessing, how do you convince international investors to opt for Germany? “There’s no single argument in favour of Germany, but rather a whole range of facts. Germany is Europe’s largest market and the world’s third- largest economy. It is also the only G7 country with an AAA rating. With an economy shaped by its strong SME sector, Germany has a broad and resilient industrial base, while also being home to a highly innovative start-up scene. Its research landscape is excellent – particularly when it comes to applied research and research closely linked to industry. Germany is aware of the challenges it faces and is tackling them. The Federal Government is investing 500 billion euros in infrastructure and a climate and transformation fund. Through the Made for Germany initiative, 133 companies have announced plans to invest more than 800 billion euros in Germany. What does that mean for foreign investors? A market that is already highly attractive will con- tinue to develop significantly over the coming years and become even more appealing. Com- panies already based here are investing heavily, showing that they believe in the market and the returns it can generate. And that is precisely where foreign investors come in: their capital and commitment are welcome because the state can- not shoulder the necessary investment alone, and ultimately it is businesses that drive the economy forward. Investors themselves – whether financial investors or companies looking to establish oper- ations in Germany – benefit from a market that offers exciting opportunities while also being safe and reliable.” s s e r p o t o F - r e s e G l i / e c n a i l l a e r u t c p © i Martin Blessing Since 2025 he has served as the Federal Chancellor’s Personal Representative for Investment, and he also chairs the Supervis- ory Board of Germany Trade & Invest. Blessing was CEO of Com- merzbank from 2008 to 2016 and has been Chairman of the Board of Directors of Danske Bank, Den- mark’s largest bank, since 2022. 39

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Deutschland.de – the magazine Ms Madani, why did you found your start-up in Brandenburg rather than Silicon Valley? “For me, it was less a choice between Brandenburg and Silicon Valley than between a place where starting a company was possible for me and one that was not necessarily accessible to someone with my background. As an Iranian woman, the USA was never the easy option – because of political developments and uncertainty surround- ing visas and future prospects. By contrast, Ger- many gave me the opportunity to study, pursue research and later build a company. The state of Brandenburg supported us along the way. Funding programmes, universities and the research and start-up ecosystem helped turn an idea into a company. That’s something I’m cer- tainly grateful for. At the same time, I see challenges: Germany often provides good support for starting a busi- ness, but much less for growing one. When com- panies want to scale up, build laboratories or become internationally competitive, they face funding gaps and processes often take too long. Even so, I founded CanChip here. Not because Brandenburg is perfect, but because I firmly believe that cutting-edge innovation doesn’t only have to happen in Silicon Valley. Research in Ger- many is strong – now we need to learn to take growth just as seriously as starting a business.” Ghazaleh Madani The molecular biologist aims to revolutionise cancer research with her start-up CanChip. Her team is developing what are known as tumour-on-a-chip models. These can be used to test the effectiveness of drugs under conditions that closely replicate human tumours. Watch the video 40 e n r ö B n i t n a t s n o K ©

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Views Satjiv Chahil Originally from India, Satjiv Chahil moved to the USA to study, going on to work as an executive for companies such as IBM, Apple and Sony. He got to know Germany in the 1990s while serving as interim head of Apple Europe. The consultant believes the Munich region has enormous potential to become Europe’s next technology hub. Mr Chahil, why will the future of the world be decided in the Munich area? e t a v i r p © “Every time I return to Munich, I am struck again by the extraordinary convergence of qualities this city possesses. The engineering depth is formidable. There are generations of accumulated excellence in automotive, industrial technology, optics, medical devices. But what moves me most is the cultural seriousness that accompanies it, all the music, the archi- tecture, the environmental consciousness, the quiet pride in craft and quality. Munich reminds me, in some ways, of the Silicon Valley I first encountered in the early 1980s, not in style, but in potential. It has all the ingredients that matter – outstanding educational institutions, a skilled and educated workforce, proximity to Europe's industrial heartland, and an emerging appetite for bold thinking. What I tell my friends in Bavaria is that you do not need to become San Francisco. You only need to become Munich at its fullest potential. Germany's engineering tradition is superb at making things better. The next step is to make things that have never existed. I believe Munich is ready for that step, and I consider it a privilege to be part of the conversation about how to bring it about.” 41

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Deutschland.de – the magazine Ms Winkels, what makes Düsseldorf Europe’s Asia hub? e k b ü L l e a h c M i l , t n e m p o e v e D c m o n o c E i f o e c i f f O l f r o d e s s ü D © “Düsseldorf is one of Germany’s most international business locations – and that is precisely what makes the city attractive to investors. Its central location in Europe, international airport and excel- lent infrastructure provide easy access to custom- ers, partners and markets in the Rhine-Ruhr region and far beyond. Dynamic industries of the future and business- related services are key features of Düsseldorf’s business landscape. Its diverse mix of industries provides economic stability, while the high con- centration of companies makes Düsseldorf an attractive location for both German and European headquarters. Here, international companies have access to the German market and an established international network. Düsseldorf is a major destination for foreign direct investment in North Rhine-Westphalia and Europe’s Asia hub, with established business com- munities from Japan, China, India and Korea. The city also maintains strong links with selected key economic regions, from Asia and the EMEA region to the USA and Canada.” Theresa Winkels Theresa Winkels heads the economic development agency of Düsseldorf, the capital of North Rhine-Westphalia. Among other things, the city on the Rhine is home to Europe’s third-largest Japanese community. More than 8,000 Japanese people live in Düsseldorf, and around 400 Japanese companies have a presence in the city. 42

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Yeonjae Kim As Regional Director, Yeonjae Kim heads the European headquar- ters of Kotra (Korea Trade- Investment Promotion Agency) in Frankfurt am Main. Kotra is Korea’s trade and investment promotion organisation. Views Mr Kim, what does Germany have to offer investors from Korea? “Korea was Germany’s ninth-largest trading part- ner outside the EU in 2025. More than anything else, Germany offers Korean investors direct access to the EU single market with more than 450 million consumers – an advantage as a busi- ness location that few other industrial economies can offer. Germany is a gateway to the EU: many Korean companies have established their Euro- pean headquarters in the Frankfurt region, includ- ing Samsung Electronics, Hyundai and Kia, and they’ve been investing in Germany since the 1980s. Since the COVID-19 pandemic, Korean consumer goods have also become increasingly popular, driven by the rise of K-culture. The two BTS concerts in Munich alone attracted around 140,000 people. Korean footballers also make their mark on the Bundesliga, helping to build trust in Korean brands. In a world of geopolitical uncertainty, economic cooperation is becoming increasingly important. For two export-oriented industrial economies, friend-shoring plays a key role. There is particularly strong potential for cooperation in defence and artificial intelligence. I firmly believe that Korea and Germany will con- tinue to deepen their cooperation in these indus- tries of the future.” n u m n S i i k n o e J © 43

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Deutschland.de – the magazine 44 h c e t n o B © i A driving force behind the city’s economic momen- tum: Biontech (above). Right: visualisation of the Life Science Campus in Mainz i l o d u t s d a w u a r g / z n a M i t m a s g n u n a p t d a t S © l

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Mainz is thinking big Mainz is thinking big Cutting-edge research meets future industries: in Mainz, universities, research institutes and biotech companies work particularly closely together. This is no coincidence, but the result of a clear strategic vision. Text: Dennis Buchwald Biotechnology is regarded as one of the key technologies of the 21st century. And this industry of the future is being driven not only in London and San Francisco, but also in the comparatively tranquil city of Mainz, the capital of Rhine- land-Palatinate. Mainz aims to become one of the leading locations for biotechnology and the life sciences. Biomindz is playing a key role in achieving this goal – a mu- nicipally owned company established in 2023. Its objective: from its base in Mainz, Biomindz aims to further advance pi- oneering technologies to the benefit of society by enabling startups and companies to get established and grow suc- cessfully in the city. As a one-stop shop, Biomindz serves as the central point of contact for companies, investors and re- search institutions. total, around 30 hectares are available across the city for startups and companies to establish themselves and grow. That is roughly equivalent to 42 football pitches. For Biomindz Managing Director Felix Wälder, the aim is not short-term success, but long-term growth: “We’re looking to reinvest the international attention and economic momentum that Mainz has gained through Biontech’s success in its fu- ture.” During the COVID-19 pandemic, the German biotech- nology company became the first in the world to receive ap- proval for an mRNA-based vaccine. While Biontech is now undergoing a period of transition, Mainz is continuing to drive the sector’s development. “It is exemplary for a city to make such a strategic commitment to an industry of the future,” says Felix Wälder. Space for pioneering ideas equivalent to 42 football pitches The Life Science Campus is at the heart of this development. Located just a few hundred metres from the FSV Mainz 05 football stadium and Johannes Gutenberg University, it is the most visible expression of these ambitions. Several labora- tory and office buildings are being constructed on the site. In A strong business region with major companies Yet Mainz, a relatively small city with around 227,000 inhab- itants, is competing with major international centres. In order to strengthen its position, Biomindz promotes not only the advantages of the city itself, but also those of the wider Frankfurt Rhine-Main region. “Mainz is located in a strong business region that is home to major companies such as 45

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Deutschland.de – the magazine The Innovation Labz on the campus (visualisation). Below: laboratory work ) 3 ( z d n m o B © i i Merck, Boehringer Ingelheim, Sanofi and Schott Pharma,” says Wälder. “Companies that choose Mainz also benefit from all the advantages the region has to offer.” Wälder believes there are several other factors in Mainz’s fa- vour. The city occupies a central location in Europe and has “outstanding infrastructure links to global markets”. Frankfurt Airport is less than 25 minutes away. The city and the wider region also have a large pool of highly qualified profession- als. With a university, a university of applied sciences, sev- eral research institutions and hospitals, Mainz is a recog- nised centre of research and scholarship. Last but not least, Wälder highlights the distinctive “Mainz spirit”: this refers to the local way of life – people are regarded as open, warm-hearted and down-to-earth, and they enjoy socialising. “Mainz is simply an attractive place to live and work,” says Wälder. A cure for diseased grapevines These favourable conditions persuaded the startup LigniLabs, for example, to establish itself in the city. The young company is developing an eco-friendly crop protec- tion product for grapevines to combat Esca, a fungal disease previously considered incurable. “Mainz is an ideal location for us as a biotechnology and chemicals startup,” says co-founder Dr Justin Grabow. “There’s a clear sense that pol- icymakers, researchers and businesses are working together to enhance Mainz’s position as a leading biotech hub.” Tron, too, is now deeply rooted in the city. The Mainz-based research institute co-founded by Biontech founders Uğur 46

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Mainz is thinking big Şahin and Özlem Türeci is researching new diagnostics and therapies for diseases with high unmet medical needs, with a particular focus on cancer. Project Manager Dr Nina Lolies says of the location: “In Mainz, research, clinical application and commercial implementation are closely interconnected. This interaction creates an ideal environment for our mission.” Germany’s most dynamic city Mainz’s Mayor Nino Haase believes the city is on the right track. “The positive development of recent years has played a major part in Mainz being named Germany’s most dynamic city four times in succession,” he says, referring to a city ranking by IW Consult. “Our ambition is clear: we want to es- tablish Mainz permanently as a leading European biotech- nology location, with particular strengths in oncology, im- munology, mRNA technology and personalised medicine.” Research and develop- ment at Biontech There are numerous other places in Germany where good ideas are transformed into successful businesses – here are a few examples. UnternehmerTUM Europe’s leading startup centre: this was once again its position in the Financial Times ranking in 2026. Affiliated with the Technical University of Munich (TUM), UnternehmerTUM is has helped create more than 1,000 startups since 2002. Its team supports founders in establishing and financing their companies and developing prod- ucts. They can produce prototypes in its in-house Maker Space. Find out more ⟶ Start2 Group Ranked second among Europe’s startup centres by the Financial Times: Start2 was established in 2008 to support spin-offs from LMU Munich, initially under the name German Entrepreneurship GmbH. The Start2 brand is now also represented in the United States, Asia and South America. Find out more ⟶ de:hub Initiative This initiative connects companies with founders and researchers. The network comprises 25 de:hubs, focusing on smart manufacturing in Bremen, optical technologies in Jena and healthcare in Nuremberg/Erlan- gen, for example. On behalf of the Federal Ministry for Economic Affairs and Energy, the initiative brings startups, businesses and academia together in Germany and beyond. Find out more ⟶ Sprind, the Federal Agency for Disruptive Innovation, supports products and technologies that make the world a little better. In order to achieve this, the Leipzig-based incubator connects researchers with industry and provides support with financing, team-building and access to the right contacts. This government-run agency exclusively supports innovations that are guided by humanist values. Find out more ⟶ 47 h c e t n o B © i

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Deutschland.de – the magazine “Many prejudices disappear once people get to know one another” Is it true that Germans are aloof, rarely laugh and have weak family ties? Indian expats in Germany usually discover very quickly that this is not true, says intercultural trainer Anjana Singh. Neverthe- less, there are differences they should be pre- pared for. Ms Singh, what do expats find particularly surprising about Germany? That depends very much on the culture they come from. And there are differences even within the same cultural back- ground, including among Indian expats. Someone from a major Indian city will perceive German culture differently from someone from a village. Anyone who has worked for an international corporation in India will probably not find work- ing for a company in Germany all that different. But there is one thing that surprises everyone: the importance attached to punctuality in Germany. Even from a German perspective, that strikes me as rather extreme. It always depends on the individual, of course. That’s true. It’s not as though people in India are not expect- ed to arrive at work or lectures on time. What Indians genu- inely find confusing, however, is the importance of punctual- ity in private life. If someone in Germany invites you for 4 p.m., you might arrive five minutes before or five minutes after four, but not at 4.30 p.m. At least not without letting them know. We’re not used to that in India. In private life there, time is a flexible concept. So this isn’t just a cliché, but something expats genuine- ly experience? Yes, absolutely. An Indian student recently told me that she arrived one minute late for a seminar at her German univer- sity. She apologised and sat down, but the professor ignored her throughout the seminar. What else do Indian expats find surprising? The communication style is very direct by Indian standards. They perceive a clear “no” or “That won’t work” as impolite, almost as a personal attack. This combination of efficiency and emotional reserve in a professional context comes across as very cold to them. They feel overwhelmed by such openness. 48

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German workplace culture Direct communication: common in Germany, but something some people need time to adjust to 4 0 0 2 t p e s _ e t a k / k c o t S © i 4 0 0 2 t p e s _ e t a k / k c o t S © i 49

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i j t i x D t a a R © Deutschland.de – the magazine “Only by reaching out to one another can we understand each other.” Anjana Singh Anjana Singh came to Germany more than 30 years ago to study sociology and has lived in Berlin ever since. She works as an inter- cultural trainer, interpreter and Hindi teacher, and she is a co-founder of Amikal, an association that promotes intercultural exchange. She also organises Indian film festivals in Germany. Most recently, she founded a company whose app New2 is de- signed to help expats get started in Germany. Are there practical aspects of life in Germany that ex- pats find confusing, too? The waste separation system, with as many as five different bins, seems overregulated to many people. It also takes some getting used to the fact that you need an appointment for every visit to a public authority and you can’t simply turn up. And the fact that contracts are interpreted strictly ac- cording to the letter is unfamiliar too. Contracts are con- tracts in India as well, of course, but there is always a little more room for interpretation. Are there positive surprises, too? Many Indians come here expecting Germans to be very re- served and have weak family ties. Once they get to know them better, these prejudices often disappear. They then real ise that Germans place great importance on their privacy and keep their private and professional lives relatively sep- arate. But that doesn’t mean they don’t have close social relationships or that their family and friends aren’t important to them. Have you encountered people who returned to their home country because dealing with these differences proved too difficult? Yes, quite often in fact. German workplace culture does differ considerably from that in India. I often hear from German SMEs that things usually break down at one particular point. Please explain! German companies place great importance on employees working independently and taking responsibility. When em- ployees are given a task, they are expected to carry it out in- dependently and within a specified timeframe. But people from India are not accustomed to openly telling their boss when they encounter difficulties. Hierarchies are relatively flat in Germany, whereas the power distance is greater in In- dia. As a result, a task may remain unfinished even though the employee is actually highly competent. People from In- dia are used to being asked more frequently how they’re get- ting on with an assignment. But in SMEs in particular, there’s simply no time for that. These differences often become ap- parent on the very first day at work. 50

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German workplace culture e d a k a K r u y a M / k c o t S © i It helps to find out about things in advance – but you can’t pre- pare for everything. 4 0 0 2 t p e s _ e t a k / k c o t S © i In what way? I recently spoke to an Indian man who had been hired as an IT expert by a small company in Berlin, as its first employee in this field. On his first day, he was told: “Here’s a hand truck. Just go to the nearest electronics shop and buy whatever technical equipment you need.” That would be unthinkable in India. On the first day there, people would mainly make small talk, talk about family and offer the new employee something to eat. In Germany, the rule is: this is your job, your area of responsibility, and you have to do everything that goes with it. Is it even possible to prepare for that? Naturally, it helps to find out about these things in advance. Cultural factors such as distance, directness and structure can also be understood in theory. But emotional adjustment is much more difficult; it’s something you have to experience in practice. After the euphoria of the first few weeks, the real emotions usually begin to set in: homesickness and thoughts of family. And sooner or later, the German winter arrives, too. The darkness and the cold – you can’t prepare for that either. Language as a success fac- tor: proficiency German makes many things easier. How important is it to learn German? You need German in everyday life to understand the rules, read contracts and so on. But even more importantly: learn- ing German is a long-term investment in integration. Whether for your career or to develop a sense of belonging, it is only by learning German that you can understand society in all its nuances. Language reveals something about a country. We’ve talked a great deal about what is expected of ex- pats – but what do expats expect of people in Germany? They expect to be valued. They want people to talk to them and listen to them. And they want people in Germany to be made more aware of how important immigration is. Integra- tion is not a one-way street, and intercultural skills need to be developed on both sides. Only by reaching out to one an- other can we understand each other. 51

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Deutschland.de – the magazine German workplace culture: a guide Take responsibility Independent working is highly valued in Germany. Managers expect employees to complete their tasks independently and speak up of their own accord if they get stuck. & s o D Embrace long-term planning Germans like to plan. At work, they proceed step by step. Even if this sometimes seems overly structured to you and you would reach the same result by a dif- ferent route, go along with it. Otherwise, you may quickly come across as disorganised. Once you’re es- tablished in your job, however, you can also suggest alternative approaches. Communicate openly and clearly Do you find it difficult to be direct with colleagues or managers? Try anyway. Otherwise, people may get the impression that you’re indecisive or lack the necessary knowledge. Hierarchies in German compa- nies tend to be flatter than in most other countries. So you can also disagree with managers if you see things differently, provided you do so objectively and respectfully. 52

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German workplace culture Don’t expect spontaneity at work “Let’s see how things go – it’ll be fine.” You’re unlikely to encounter this attitude very often in a professional context in Germany. Employees are expected to plan ahead as precisely as possible and leave as little as possible to chance. Things may be different in private life. Even so, spontaneous visits without prior notice are fairly unusual. Don’t be late People in Germany expect punctuality, particularly at work. But even among acquaintances and friends, an agreed time is considered relatively binding. Anyone who is running late should let the other person know. Punctuality is especially important for appointments with doctors or public authorities. Arriving late may even result in you being turned away. s t ’ n o D 53

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Deutschland.de – the magazine Imprint Publisher Deutschland Edition is published by Fazit Communication GmbH in cooperation with the Federal Foreign Office, Berlin. Editorial team Fazit Communication GmbH Pariser Straße 1, D-60486 Frankfurt am Main Tel.: +49 (0) 69/75 91-31 01 www.fazit.de Editors-in-chief: Janet Schayan, Dr Helen Sibum Editor: Jessica Krauß, Anja Leuschner, Wolf Zinn Art Direction: 3st kommunikation GmbH Production: Stefan Reichart, Viktoria Vieweg Assistant: Isabel Baron www.deutschland.de/en Editorial service Email: kontakt@fazit.de Tel.: +49 (0) 69/75 91-31 01 Information Enquiries: kontakt@fazit.de Editorial deadline for this issue: 1 August 2026 Cover: AdobeStock/Taras Rudenko, Konstantin Börne, Getty Images/Alexander Sikov, Getty Images/horstgerlach, Getty Images/Andriy Onufriyenko (2), 3st Copyright © by Fazit Communication GmbH 2026 “Getting Started in Germany” Housing, language, finances: skilled workers who come to Germany from abroad have lots of questions. The “Getting Started in Germany” digital magazine answers these questions and provides helpful advice. Further information ⟶ 54 Welcome to Berlin’s major investment summit For the first time, the Federal Government is hosting a major investment conference in Berlin. The Invest in Germany Summit on 19 and 20 October 2026 is aimed at international investors and business leaders. The conference is being organised by the Federal Ministry for Economic Affairs and Energy and Germany Trade & Invest, the Federal Government’s foreign trade and investment agency. In addition to the official programme, there will be numerous opportun- ities for networking and face-to-face discussions. Further information ⟶ Germany Trade & Invest supports international companies looking to establish a presence in Germany. Their experts provide interested companies with free advice and support in putting their plans into practice.