The northernmost section of the UAE is only 25 miles wide.
I would guess IF they dug a canal that Kuwait, Iraq, Qatar, Bahrain would all help pay for it. Or the UAE could pay for it in tolls in a few years.
In the interim, all of those countries are all building pipelines to move their oil & gas directly to the Red Sea, Gulf of Oman or through Syria & Turkey to the Mediterranian.
This area (26.19823259461338, 56.39531933784942 called Two seas view). Less than a mile wide with deep water access and shoreline protection from rough seas.