Saudi Arabia is pressing on with plans to dig a 60km canal along its border with Qatar which would effectively turn the latter into an island.

According to a report by Gulf News, five international companies with expertise in digging canals had submitted their tenders for the $745 million project – known as the Salwa Canal – ahead of the June 25 deadline.

The proposed waterway is 200m wide and will be dug to a depth of up to 20m providing a maximum ship draft of 12m. This would allow the canal to accommodate cargo, container and passenger ships up to a length of 295m.

The canal will be built at between one and five kilometres from the Qatar border, with the land on the border side to be used by the military and border guards.

The proposal also has a commercial rationale with the development of tourism resorts along the new waterway, including hotels and resorts with private beaches.

The name of the winner will be announced within 90 days, and the winning contractor will have one year to complete the canal, according to the reports.