Rupert Murdoch’s News Corp has upped its stake in Rotana Media Group, following a US$35 million investment in the vast Saudi Arabian conglomerate - according to The National.

News Corp took a 9.09 stake in Rotana Media for $70 million at the start of 2010. The deal forged then provided Rupert Murdoch’s group with an option to double its holding within 18 months – a facility which it has now drawn upon to raise its existing shareholding by 50%, to 14.53%.

The remainder of that stock extension option will be open to News Corp until November 2012, according to Dow Jones.

Rotana Media - controlled by the Saudi billionaire Prince Alwaleed bin Talal bin Abdulaziz Al Saud - counts free-to-air satellite TV channels among its extensive portfolio, in addition to being the largest producer of Arabic music and a major distributor of Arabic movies.

News Corp, meanwhile, broadcasts 12 channels in the Middle East and North Africa through its Fox International Channels arm, in addition to its Sky News channel which is available locally on pay-TV platforms. It also plans to launch Sky News Arabia - an Arabic language version of BSkyB’s 24 hour rolling news channel – free-to-air in spring 2012.

Analysts predict the increased shareholding in Rotana Media will help News Corp to further expand its presence in the Middle East, and could also increase the quality of the region’s local broadcast media.

“There’s a big potential market out there, with a large community with a single language…and a very youthful population with an appetite for content,” Matthew Reed from Informa Telecoms & Media told The National.

“This is why News Corp is interested … they see a big opportunity in this region. One could imagine there is some kind of potential for transfer of technical, programming or content skills."