To streamline its $23.5 billion in debt, Dubai World has reached an agreement with a group of banks. This debt-plagued conglomerate is also a proxy for the free-spending emirate of Dubai. Following months of negotiations between Dubai World and a committee, in lieu of more than 90 lenders, including HSBC, Royal Bank of Scotland and Bank of Tokyo-Mitsubishi UFJ, the deal saw its final face.

This agreement has now given time to the Company to cut its costs and sell assets and hence be in an enhanced position to pay, as it has given an extended time for the conglomerate's loans.

Despite Dubai's debt hiccup, the Western banks are aware of the fact that it'll still remain a fruitful place to do business in future. Thus, the banks are ready to take a short-term hit so as to maintain relationships with the Company. Also, Dubai's richer neighbor helped efficiently for the deal to occur.

But it'll definitely be of great assistance for Dubai World to grow high. Now, the stock markets of the company have also risen to 1%.

Aidan Birkett, Head of Dubai World's restructuring Effort, said, "The proposal puts the company on a sound financial footing and reflects the continued support of the government of Dubai and its lenders. It offers the Company the ability to maximize the value of its assets over the medium to long term".