Texas Attorney General Ken Paxton dropped a political thunderbolt Monday, announcing a formal investigation into a massive proposed “sustainable city” development in Kaufman County that critics fear could become something far more controversial.
At the center of the probe is a Dubai-linked project that could potentially house up to 20,000 foreign nationals in an unincorporated area east of Dallas. Allegations have surfaced suggesting the development may be an attempt to establish a “sharia city” on American soil — a claim now drawing statewide and national attention.
Paxton made clear that his office is taking the concerns seriously.
According to his announcement, the investigation was prompted by public reporting, specifically a Feb. 4 exclusive from the Daily Caller detailing how rural Kaufman County residents had grown alarmed over what they described as a secretive land acquisition effort tied to a Saudi Arabian private holding group, SEE Holdings.
The reporting revealed that a Dubai-based buyer, represented by a Dallas law firm, was seeking approval for three new municipal water districts to support what is being described as a sustainable city project. SEE Holdings is known for net-zero developments in Dubai, projects that often feature mosques and community amenities aligned with Islamic principles.
Within days of the report’s publication, the story gained traction across conservative media and social platforms. Concerns intensified among local residents who questioned the lack of transparency surrounding the development.
BREAKING: I’m announcing an investigation into a potentially illegal “sharia city” development in Kaufman County.
While you’re on American soil, you will obey America’s laws. pic.twitter.com/qTDzm8Hv9o
— Attorney General Ken Paxton (@KenPaxtonTX) February 9, 2026
Paxton’s office moved swiftly, issuing Requests to Examine (RTE) to SEE Holding and Kaufman Solar LLC. The demands seek detailed records, including communications with local city, school, county, and state officials, corporate relationship disclosures, land purchase documentation, and full development plans.
The sweeping nature of the inquiry signals that state authorities are not treating the matter lightly.
Residents told the Daily Caller they were troubled by what they described as a tight-lipped posture from local officials. One source familiar with the project claimed that communication had largely shifted to phone calls, with little to nothing being put in writing.
“I do know that all officials are being very careful and not putting anything in writing. Only phone calls are being answered and made. No one has had any luck communicating in writing at the moment,” the source said. “Which makes it super hard. Very smart on their part. I pretty much don’t believe anyone anymore with what they say they will do.”
The concerns have fueled speculation and intensified scrutiny as details remain limited.
Paxton underscored the stakes in his announcement, pledging a full investigation into the development “for any unlawful actions” and adding a pointed reminder: “While you’re on American soil, you will obey America’s laws.”
As the investigation unfolds, the proposed Kaufman County development is rapidly becoming a flashpoint in a broader debate over transparency, foreign investment, and the future of rapidly growing Texas communities.
