The 31-mile causeway will link Ras Homaid in Tabuk with the Egyptian resort city of Sharm El-Sheikh, passing through Tiran Island. The trip across the causeway will take around 20 minutes.
Construction is expected to be completed in three years at a cost of $3 billion. The project will be implemented by a consortium of Saudi, Egyptian and international companies.
Between 50,000 to 70,000 Egyptians travel to Saudi Arabia each year to perform the annual pilgrimage to Makkah. In addition, around 1.2 million Egyptians work in the Arabian Peninsula, mainly as construction workers.