Riyadh and the Canal projects to bypass the Strait of Hormuz, obstacles, and prospects

Plans to build canals bypassing the Strait of Hormuz are not merely engineering projects but a geopolitical struggle for energy sovereignty in the Gulf, where Saudi Arabia seeks to reduce Iran’s influence but faces enormous technical and financial obstacles.

In 2008, the initial plan included a 180-kilometer canal connecting the Persian Gulf coast near Dubai to the port of Fujairah in the Indian Ocean was proposed.

Later, a water canal was proposed from near the Kuwaiti border to the city of Yanbu on the Red Sea coast with a length of 1,200 kilometers, a width of 200 meters, and a depth of 15 meters. Another artificial waterway from the Persian Gulf to the Red Sea was planned with a length of about 950 to 960 kilometers, a depth of about 25 meters (to accommodate large container ships), and a width of about 150 meters.

Another proposed route is from the eastern coast of the port of Dammam to the Red Sea through the Rub al-Khali desert.

A decade ago, a think tank in Riyadh announced that a comprehensive study was underway to connect the Persian Gulf to the Arabian Sea via a waterway called the “Al Arab Canal” or “Salman Canal.” The 950-kilometer project would run 630 kilometers in Saudi Arabia and 320 kilometers in Yemen.

The de facto closure of the Strait of Hormuz on May 8, 2026, has forced GCC countries to rethink their oil and trade routes, rail corridors, and energy storage centers, and the region’s logistics map.

Opportunities and Benefits

Riyadh has been considering alternative routes to bypass the Strait of Hormuz for decades. A large portion of Saudi Arabia’s oil exports pass through this route, and “diversification of export routes” is a key variable in Riyadh’s energy security. As of March 2026, Saudi Arabia has diverted crude oil shipments from the Persian Gulf to Yanbu with a pipeline.

Certainly, the water canal projects can be consistent with the goals of Saudi Vision 2030 to reduce dependence on oil, diversify the economy, develop large........

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