Atwal trailed by one heading into the par five 18th hole but emerged victorious with a closing birdie while a nervous Wang posted a six following a wayward second shot which ended in a bush.
The 41-year-old Indian ended the day by signing off with a six-under-par 66 and a winning total of 16-under-par 272 while Wang carded for a 67.
Scotsman Simon Yates took third place following a 68.
“This one feels really special,” Atwal told media.
“I think the last time I won on the Asian Tour was 2008 (Maybank Malaysian Open). I’ve gone through some really tough times the last few years with injuries and losing my card on the PGA Tour and all that stuff.
“It was at a point where I almost wanted to quit. Thanks to a few of my family and friends, I didn’t, and here we are.”
The-19-year-old Wang produced a flawless outward 31 and led by three shots at one stage before his late blemishes.
He opened the door for Atwal with a second bogey of the day on 17 when he three-putted before missing a 10-foot par attempt on the last hole.
Leading Scores after Round 4 of the Dubai Open:
272 – Arjun ATWAL (IND) 73-65-68-66.
273 – WANG Jeung-hun (KOR) 71-67-68-67.
275 – Simon YATES (SCO) 71-67-69-68.
276 – Jake HIGGINBOTTOM (AUS) 72-71-69-64, Thaworn WIRATCHANT (THA) 74-69-65-68.
277 – Carlos PIGEM (ESP) 70-73-68-66, Daisuke KATAOKA (JPN) 73-66-68-70, Pariya JUNHASAVASDIKUL (THA) 68-72-67-70, Chapchai NIRAT (THA) 71-69-67-70, Jbe KRUGER (RSA) 70-72-64-71.
278 – Bryce EASTON (RSA) 69-71-69-69, MO Joong-kyung (KOR) 70-71-68-69, Gaganjeet BHULLAR (IND) 69-69-69-71, Shiv KAPUR (IND) 71-66-69-72.
279 – Unho PARK (AUS) 75-68-69-67, Rattanon WANNASRICHAN (THA) 75-70-67-67, Thitiphun CHUAYPRAKONG (THA) 70-71-67-71, Darren CLARKE (NIR) 72-71-64-72.