Costly Gulf Canal Project will be Beneficial for Gulf States

Dubai is well known to outstand at projects, which require more money than common sense, and now a very expensive project is soon to be started in Dubai as it is planning to build a canal across the emirate's mountainous hinterland. The project includes linking the Gulf with the Indian Ocean. Though a heavy amount of more than $200 billion will be spent on it, and it will only reduce the distance by 100 miles. However, this canal will help the ships to avoid the Strait of Hormuz and also the influence of Iran over the unfaithful stretch of water. This Strait is the way by which the ships carry 90% of the Gulfs oil, everyday. This 90% also include 40% of the world's traded supplies. Iran has clarified it bluntly that if threatened, they will block the channel. This situation, which would obviously be bad for the oil consumers, can further worsen for the Gulf producers. So, overall the heavy amount being spent on this project is not that expensive after all, and it surely will benefit states like Saudi Arabia, Kuwait and Iraq.

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