Dubai World, the state-owned conglomerate, reached a deal to restructure about $24.9 billion of liabilities.
Dubai's government said that Dubai World reached an agreement with more than 99% of its creditors, Reuters reported. In a separate statement, Dubai World said it plans to close the restructuring in "the coming weeks."
"The agreement formalizes a strong consensus about a fair and balanced restructuring proposal and is a key step to putting Dubai World on a sound and stable financial footing," Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said.
Dubai World's previous target date for completion was Oct. 1.
The announcement is good news for Dubai's debt-ridden government. Earlier this week, a unit of Dubai Holding, the conglomerate owned by the emirate's ruler, delayed payment on $555 million loan.