According to The New York Observer, the 'Heartless' rapper recently sent several scouts to the Persian Gulf to find potential locations for the project.
Sources tell the publication that West's team met with government officials and film companies in Abu Dhabi, Dubai, and Doha Qatar, with an apparent "bidding war" taking place between the cities for the chance to produce the film.
"In Abu Dhabi, Dubai and Doha all of the film initiatives are government controlled," an insider explained.
"A bidding war is going on between various government entities and private investors to fund the film. There's pretty intense rivalry here between Abu Dhabi, Dubai and Qatar. They all want to claim the film as their own and take credit for generating the publicity."
While the details behind West's idea for the project have not been revealed, he is apparently looking to shed light on the lifestyle in the Middle East in order to "bridge the cultural divide".
"His reps seemed genuinely enthusiastic about creating a piece which highlights the culture accurately. There's a lot of preconceived notions and stereotypes about Emiratis and Qataris, which Westerners often play up," the source explained.
"They discussed how Kanye is looking to bridge the cultural divide and break misconceptions."
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Watch Kanye West's video for 'Heartless' below: