Financial Times has reported that British Sky Broadcasting is in talks to broadcast a 24-hour rolling news service in Arabic, based in Abu Dhabi, as part of a joint-venture with a local private investor. Entering a highly competitive market, the satellite channel would launch under the Sky News name and be the UK broadcaster's first venture into a territory outside the UK.

In a statement, John Ryley, head of Sky News, said: "This venture would build on our existing strengths as an international news provider and bring the Sky News brand to a new audience. Discussions are progressing well and we look forward to bringing a new approach to Arabic-language news."

Discussions are at a relatively early stage, but the channel would launch within two years if the talks succeed, according to the source.