(Bloomberg) -- Abu Dhabi-based technology investor Shorooq Partners reached the initial close of its second private credit fund with backing from regional and Korean investors, underscoring the growing ties between the United Arab Emirates and the Asian nation. 

The $100 million fund was launched with a subsidiary of IMM Investment Corp., a $6 billion Korean private equity and venture capital firm, which will become a minority partner in the vehicle, according to a statement. 

Both firms have previously collaborated on Shorooq’s first tech-focused private credit fund, which has invested in agriculture startup Pure Harvest and Saudi fintech Tamara.  

The regional private credit market has been expanding rapidly in part due to “increasing demand for alternative financing solutions” in the local tech sector, according to Shorooq. Its new fund will focus on manufacturing, industrials, finance and software services sectors. 

Shorooq’s announcement comes amid closer economic ties between the UAE and South Korea. The UAE last year pledged to invest $30 billion in Korea’s energy and defense sectors following a state visit by the Gulf nation’s President, Sheikh Mohammed bin Zayed Al Nahyan.

The UAE leader is set to travel to the Asian nation again later this month. 

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