Dubai: A proposed Sky News 24-hour Arabic news service based in Abu Dhabi could represent serious competition for existing Arabic TV channels.

At least seven per cent of Sky News owner News Corp is owned by Saudi Prince Al Waleed Bin Talal, who recently hinted that he would help set up a new 24/7 news channel in a region virtually saturated with Arabic broadcast competitors.

News Corp owns British Sky Broadcasting which is in talks to set up its Sky News channel in the UAE, the company confirmed in a statement to Gulf News.

"Major independent UK-based news channel Sky News is in discussions with an Abu Dhabi based private investor about the potential to establish a new 24/7 Arabic language satellite news channel," Sky News said from the UK. "The new channel, to be operated under the Sky News brand, would be run as a 50-50 joint venture between the two parties. It would aim to offer a new style of multi-media news across the Middle East, North Africa region (Mena), offering independent and neutral coverage of the news agenda."

The company confimed "the new channel would be based in Abu Dhabi with bureaus in most major regional and international news centres. It would be available free-to-air across MENA."

Steve Vaile, CEO and Founder of Dubai's H2O, a firm that specialises in new media development and marketing communications, said part ownership regionally can't hurt. "This gives them a very good advantage in the GCC market," said Vaile.

Any ongoing discussions to set up the service within two years would likely hinge on a complete, leading-edge multi-media platform, he said, rather than a straight-up TV news channel.

"I can't see them coming into the market with a single pay TV channel," Vaile said, adding that any new service owned in part by media baron Rupert Murdoch would have to overcome some hurdles in the Middle East.

"I think it would take time and it would need a lot of positioning to win viewers' trust with that channel," Vaile said, especially with a bevy of Arabic news services underfoot such as Doha-based Al Jazeera, Dubai's Al Arabiya and BBC Arabic.

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."