The Export-Import Bank of Korea (Kexim) has signed a preliminary agreement with the Abu Dhabi Fund for Development to work together on co-financing projects in emerging markets.

The memorandum of understanding (MoU) is the first step in the two entities co-funding projects through the use of concession loans; which are credit facilities usually offered to countries by other governments at below market rates.

Sectors such as education, infrastructure, agriculture, health and information and communication technology sectors are areas of interest for both parties.

The use of public-private partnership (PPP) structures will also be something the two sides will promote to help provide much-needed funding for infrastructure development in emerging markets.

South Korea has strong trade and investment ties with the UAE, with several its construction firms winning contracts on the country’s major infrastructure projects.