Dubai-based development for immigrants in Texas halts after state investigation
July 29th, 2015 Austin, Texas USA: Texas Attorney General Ken Paxton testifies in front of the Senate Committee on Health and Human Services, just a few days before a grand jury indicts him on three felonies.Two charges of first-degree securities fra
KAUFMAN COUNTY, Texas - A planned development in North Texas that reportedly aimed to house as many as 20,000 migrants, dubbed "Sharia City" by lawmakers, has been canceled after the state launched an investigation into it.
Kaufman County development canceled
The announcement came Thursday from AG Ken Paxton's office, saying Rep. Lance Gooden had confirmed the Kaufman County development that Texas lawmakers had dubbed "Sharia City" had ended its plans.
What they're saying:
"Because of the risks posed by the infiltration of sharia law into Texas, my office will work tirelessly to end any illegal scheme that seeks to subvert the Constitution and disrupt the American way of life," said Paxton. "I am glad to see that the developers of this ‘sharia city’ in Kaufman County have ceased their operations following my office’s investigation. My office will continue to investigate any potential threat to the safety and well-being of Texans."
‘Sharia City’
The backstory:
The decision to end the development comes after Paxton's investigation launched on Feb. 9.
In early February 2026, Paxton said residents had raised concerns about a Dubai-based development company’s plan to purchase thousands of acres near Kaufman, Texas. The developers’ had planned to create a "sustainable city" with the potential to house as many as 20,000 foreign nationals alarmed the surrounding communities.
Lawmakers were concerned that the influx of immigrants into rural Texas could pose national security risks. They said residents also feared the development could place a strain on the local water supply.
Group responds
The other side:
The group behind the development is called The Sustainable City USA. They shared the following statement with FOX Local:
"The Sustainable City USA project remains part of our long-term vision to introduce future-ready, net zero emissions communities to the United States. As part of our early-stage planning, Kaufman County was one of several locations evaluated.
"Following comprehensive technical and commercial assessment, we have decided not to proceed with development in Kaufman County. Our current direction is focused on delivering a series of smaller, strategically phased communities rather than a single large-scale development. This approach enables greater flexibility, stronger alignment with local infrastructure and market conditions, and more effective long-term delivery of our integrated, self-sufficient model.
"The Sustainable City model is built on creating high-quality, human-centric communities that integrate clean energy, water reuse, urban agriculture, and circular waste systems, designed to enhance quality of life while reducing environmental impact. Beyond social & environmental performance, the model is also structured to generate local economic value through job creation, skills development, and long-term operational efficiencies that benefit both residents and host cities.
"In an increasingly complex global landscape, where energy resilience, resource security, and cost efficiency are critical, this integrated and self-sufficient approach is more relevant than ever.
"We would also like to clarify that recent characterizations of the project are inaccurate and do not reflect the nature, intent, or structure of The Sustainable City model, which is inclusive by design and aligned with the regulatory and cultural frameworks of the markets in which it operates.
"We will continue to explore opportunities across the United States that align with this vision and will share further updates in due course, working transparently and in close collaboration with our stakeholders at every stage."
Editor's note: This story has been updated to include a written statement from The Sustainable City USA group.
The Source: Information in this article came from the AG's office and a statement from The Sustainable City USA group.