Saudi Arabia and Egypt are putting the final touches to an ambitious transcontinental project to span the Gulf of Aqaba, creating a direct link between Africa and Arabia.

King Abdullah, the Saudi monarch, is expected to lay the foundation stone for the causeway when he visits the northern province of Tabuk next week. The project, which has been discussed for the past 20 years but never acted on, would involve the construction of two bridges across the Tiran Strait spanning a total distance of about 15 miles (25km).

The first, from the Saudi mainland at Ras el-Sheikh Humayd, would cross to Tiran island. The second, more challenging leg, would span the wider and deeper mouth of the Gulf of Aqaba and join the Sinai Peninsula at Sharm el-Sheikh. A consortium of Saudi, Kuwaiti and Egyptian partners is involved in the project, which would cost £1.5 billion and could be completed by 2012.

For Egyptians, the prospect of being able to travel overland to Saudi Arabia is particularly welcome. The tens of thousands who travel for work or on the haj pilgrimage to Mecca rely on a ferry service. Last year 1,000 people were killed when an overcrowded ferry sank in the Red Sea. Since then the service has been reduced.

“The causeway has been the dream of most Egyptians since it was first proposed,” Ali Mahmoud, an Egyptian journalist working in Saudi Arabia, told the Saudi-based Arab News. “It will have a great socio-economic and political impact on the region. [It] will benefit many countries in the Gulf and Africa and bring about a dramatic change in transportation between the two continents.” The only land link between Egypt and the Arabian Peninsula is via Israel, which most Arab states do not recognise.

The bridge would also enable Saudi tourists to flock to Sharm el-Sheikh, the relaxed Egyptian beach resort, a favourite of European holidaymakers. The Saudis have been inspired by the success of the causeway to Bahrain, which was completed in 1986. Nevertheless, there are still some formidable obstacles to overcome before the project can be begun.

The Gulf of Aqaba is home to unspoilt coral reefs and some of the best scuba diving waters in the world. Any big construction project in the area could seriously damage the delicate maritime environment. Shipping could also pose a problem. The bridge would cut across a busy channel through which commercial shipping passes to Eilat, in Israel, and Aqaba, in Jordan.

Israel may have strong objections to the causeway if it were not satisfied that the security of its ships could be guaranteed by the Saudis and Egyptians. Saudi Arabia still does not have any formal ties with the Jewish State. Attempts by Egypt to ban Israeli shipping from the Gulf of Aqaba were one of the reasons for the outbreak of the Six-Day War 40 years ago.

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