Looking at the map, wouldn’t a suez canal type construction be viable somewhere on that peninsula?

Look at a topographic map instead, this is a mountain range that goes up to 1934m.

Ships aren't going up there in this century.

Why dig a whole canal when you could just set up a pipeline for much less money?

If you consider the topology, it is way less viable.

If you go through UAE (the narrow part) you are attempting to build a canal through mountains and desert.

Any other route (the non narrow parts) would just be 3-4x the length of the Suez Canal but through a desert, but since its not sea level the whole way, with locks (which means more water... again, desert), and at the end forces you through an even narrower strait at the end (Bab-el-Mandeb). The Houthis in Yemen have blasted Israeli-affiilated ships in that strait before, and they are Iran-backed.