Praise be to Allah, and peace and blessings be upon the Messenger of Allah.
Yes, the Qur'an confirms the existence of Al-A'raf, which is a barrier or elevated place between Paradise and Hell. Allah, the Exalted, says:
“Between them is a barrier, and on the elevations are men who recognize each by their marks. They will call out to the people of Paradise, ‘Peace be upon you.’ They have not yet entered it, but they hope to. And when their eyes are turned toward the people of the Fire, they will say, ‘Our Lord, do not place us with the wrongdoing people.’” [Al-A'raf 7:46–47]
Scholars have differed regarding the identity of the people of Al-A'raf. The strongest view is that they are people whose good deeds and bad deeds are equal. Their sins do not cause them to enter Hell, but their good deeds do not initially admit them into Paradise. They therefore remain on Al-A'raf until Allah decides their matter, after which they enter Paradise by His grace and mercy.
This view was reported from a number of the Companions, including Hudhayfah and Ibn Abbas, may Allah be pleased with them. It was also the view preferred by Ibn al-Qayyim, may Allah have mercy on him.
Scholars have mentioned other views concerning the people of Al-A'raf. Some said they are believers who were temporarily prevented from entering Paradise for a reason; others said they are people who lived during periods without a messenger or the children of polytheists; others said they are people of special virtue; and some said they are angels. However, the view that they are people whose good deeds and bad deeds are equal is among the most well-known and strongest opinions.
The people of Al-A'raf will not remain there forever, nor will they enter Hell. Rather, they will await Allah's judgment, and then they will enter Paradise by His mercy, as Allah says after mentioning their situation:
“Are these the ones about whom you swore that Allah would never grant them mercy? Enter Paradise; no fear will there be concerning you, nor will you grieve.” [Al-A'raf 7:49]
Al-A'raf is an elevated place between Paradise and Hell. According to the strongest opinion, its people are those whose good deeds and bad deeds are equal. They remain there for a period, then enter Paradise by the mercy of Allah, and they do not enter Hell.
And Allah knows best.