Christian Lacroix is understood to have been rescued from administration by Al Hassan Bin Al Nuaimi.
US owner the Falic Group, which bought Lacroix from LVMH in 2005, has concluded a deal to sell the French couture house to Al Nuaimi, the sheik of Ajman, according to Womenswear Daily.
It is understood that Al Nuaimi plans to continue the couture operations of Lacroix and to reinforce its luxury brand position.
Christian Lacroix went into administration in June after the label was hit by falling sales. Italian investment group Borletti was previously considering a bid but backed out earlier this month.
The current deal with Al Nuaimi involves the payment of third-party debts and as such must still be approved by the commercial court in the US.