A proposed large-scale housing development in Kaufman County backed by a Dubai-based company has been canceled following a state investigation by Texas Attorney General Ken Paxton.
The project, described by developers as a “sustainable city” on roughly 2,300 acres near the city of Kaufman, would have had the capacity to house as many as 20,000 foreign nationals. Plans involved a U.S. subsidiary of SEE Holding in connection with Kaufman Solar LLC. The development drew significant local concern after residents learned of the land acquisition in early February 2026.
Paxton announced the formal investigation on February 9, 2026, citing public reports and fears that the project could function as an unlawful “sharia city” in violation of Texas law and American constitutional principles. His office issued Requests to Examine to the involved companies, seeking details on communications with local officials, the companies’ relationship, and specifics of the real estate plans.
Rep. Lance Gooden confirmed the developers’ decision to withdraw. After discussions with the company, Gooden stated the matter is resolved and the project will not move forward in Kaufman County. The cancellation was reported around March 23-26, 2026, effectively ending the proposal before any formal approvals or construction began.
Community reaction in the rural area centered on potential strains to local resources, including water supplies, as well as broader questions about national security and governance. No specific infrastructure impacts or disruptions occurred, as the project remained in early planning stages without submitted applications for development.
Paxton welcomed the outcome, noting his office’s commitment to preventing any schemes that could undermine Texas values. The investigation highlighted ongoing scrutiny of large foreign-backed projects in North Texas following similar controversies with other proposed communities.
Kaufman County officials had not yet received formal proposals for the site, and no county meetings on the project advanced to approval. The cancellation leaves the thousands of acres in question without the planned “sustainable city” features, such as advanced technology or green infrastructure that developers had referenced in preliminary descriptions.
Local residents expressed relief that the proposal, which had alarmed surrounding neighborhoods, will not proceed. No injuries, fatalities or other public safety incidents were connected to the matter.
The episode underscores heightened attention to foreign investment in Texas real estate and large-scale developments in unincorporated areas.
