In 80s during the time of Shaikh Rashid Bin Saeed Al Maktoum (born 1912 - died October 7, 1990) the father of the current Ruler of Dubai (Shaikh Muhammad bin Rashid Al Maktoum) had foreseen the issue of the blocking of the Strait and the consequences it will have on the Gulf countries using it and to counter that he had a view of creating a canal through the northern areas of UAE, a canal that could be used as an alternative to the Strait in case of any threat.
During the Iraq-Iran war (when Iran gave orders to it's naval boats to attack oil tankers and other ships in the Arabian Gulf and then later stopped the attacks), Dhahi Khalfan Tamim (current Chief of Dubai Police) on a usual visit to the majlis of Shaikh Rashid bin Saeed as a citizen found that an Iranian delegation was present in the majlis. They delegation left 10 after he arrived. He asked a person next to him who are those people, he replied they are Iranians and have come to Shaikh Rashid to ask him to leave "his idea". Dhahi Khalfan asked what is his idea? The man said, Shaikh Rashid had sent a person indirectly to the Iranians to let them know that a canal will be made from Fujairah (on the eastern coast of UAE) to Ras Al Khaimah (on the western coast of UAE) to connect the Arabian sea with the Arabian Gulf and hence cancelling the historic importance of the Hurmuz Strait as long as Iran fires missiles and using fast boats to attack the ships / boats using the normal navigational lines and that Iran should stop this act of it's which is exposing the oil tankers and cargo ships and vessels to danger.
Through his idea of cutting a canal by passing the Strait of Hormuz, Shaikh Rashid had made them understand that the strategic importance of the Strait of which Iran is controlling can be cancelled any time and that even the strategic importance of the 3 islands occupied by Iran due to their strategic importance can be cancelled from their thoughts if a canal was made as he visioned.
A slightly changed form of the idea was later studied in detail by the Government of Dubai in 2008 with the option of a canal from the shore of Dubai (instead of Ras Al Khaimah) to Fujairah