The channel will make the eastern coast of Saudi Arabia continuous, which will simplify trade and tourism, "refresh the region".
It is noted that construction is not hindered by any natural and social features of the territory. There are no mountain chains, no settlements and villages or agricultural lands.
According to reports, five hotels and holiday resorts, as well as two new harbors, have also been planned along new channel.
The move comes amid the continuing dispute between Qatar and other countries in the region. Earlier, a group of Gulf States led by Riyadh has severed diplomatic, trade and transportation links with Qatar.