BSkyB is in talks with a private Abu Dhabi investor to launch a round-the-clock Arabic news service based in the UAE capital, the Financial Times reported on Wednesday.

If the talks are successful the satellite channel, operating under the Sky News name, would launch within two years, the FT said, citing people close to the situation.

It would be the first venture outside of its home market for Britain's dominant pay-TV broadcaster, the paper said.

Citing two people familiar with the matter, the FT said the venture would be 50-50 owned and has no ties to the Abu Dhabi government.

BSkyB could not immediately be reached for comment.-Reuters