Nickelodeon Arabia marks an expansion of the long-term partnership between the two networks and follows on from the much-delayed MTV Arabiya, which is due to launch before the end of the year.
The new free-to-air kids' channel will fall under the umbrella of the Arabian Television Network, AMG's TV broadcasting wing, and is due to go live sometime next year.
The channel will broadcast via satellite to 36m TV households across the Middle East, with a potential audience of 190m people across the region. Programming will include a mix of international content from Nickelodeon's global portfolio and original local Arabic productions.
Abdullatif Al Sayegh, CEO of AMG, said: "Nickelodeon will provide the best in world-standard entertainment for children, raising standards in the region and setting a strong precedent for the future."
Bhavneet Singh, managing director and senior vice-president of Emerging Markets Group at MTVNI, said: "The launch of Nickelodeon Arabia is a part of our wider, ongoing multi-platform strategy encompassing consumer products, digital media, hotels and theme parks, which we hope will establish Nickelodeon as the premier destination for kids in the region."
The partnership between government-owned AMG and MTVNI Emerging Markets signals the next step in establishing a multi-brand, multi-platform MTVNI portfolio across the Middle East.