The study establishes relationships between profitability in the UAE construction industry and determines its contribution to economic growth. It sought answers to the problems of significant influence, independence, and how strongly profitability variations predict economic growth. Profitability rates of fifty construction firms in UAE used in the study, for a period of ten years. Findings reveal significant influence of profitability variations on economic growth. There is high degree of influence of construction tender price on economic growth and low positive correlation of industry output and labor rates. Profitability variations significantly influence economic growth and are not independent of each other.
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