Question - This country's Khawr al Udayd, or "Inland Sea," is the proposed site of the Salwa Canal, which would make this country

This country's Khawr al Udayd, or "Inland Sea," is the proposed site of the Salwa Canal, which would make this country an island. This country, with the highest GDP per Capita in the Muslim world, is ruled by the al-Thani family and was blockaded by the Gulf Cooperation Council after it was accused of supporting terrorism. For the point, name this peninsular country that extends off Saudi Arabia.

Answer:

State of Qatar (or Dawlat Qatar)