The construction industry is one of the leading industries in which various sectors are interrelated. Any organization requires well developed and skilled leaders to be sustainable in the industry. A strong leadership style is imperative for the success of every organization and the performance of the industry largely depends on the skills of the leaders and their management tactics. This dissertation discusses the influence of different leadership styles on the performance of the construction industry and the various factors affecting those leadership styles. Historical data suggest that the construction industry lacks effective leadership practice, which has eventually prevented it from accomplishing better results and performances. The construction industry of the United Arab Emirates (UAE) is expansive and requires effective leadership strategies for its development and growth. For the success of construction industry, transformational and transactional leaderships should be followed for the managers to deal with changing situations effectively. These forms of leadership are important because they adapt with each situation and satisfy the current organizational requirements. To enhance the level of productivity and create a successful industry, transformational and transactional leaderships are extremely important. This dissertation elaborates on the aspect of leadership and its impact on the success of an organization, particularly in the construction industry. Effective leadership practice can significantly increase the profitability of the construction industry in UAE. Moreover, practices, experiences, of the leaders and their decision making ability are important considerations that greatly affect the success of an organization. The effectiveness of an organization depends on its leadership style and the way the leader addresses various situations to derive proper and relevant output. The findings obtained from this study revealed that the age of the leader plays a significant role in determining the leadership style. To a major extent, aged leaders tend to apply transformational leadership styles more often compared to their younger peers. In addition to transformational leadership styles, aged leaders also use transactional styles to motivate their subordinates within the workplace. Coversely, the tendency of the leaders to use transformational or transactional styles of leadership had almost no correlation with the gender of the leader. While gender had no significance on the adaptation of leadership styles among the sampled respondents, the correlation between the nationality of the leaders and the leaders' choice of transactional and/or transformation leadership styles were prominent. However, due to their educational level, most leaders prefer using a transformational leadership style. The independent variable (i.e., education) in this context had little significance in the adaptation of transactional leadership choices. A similar correlation was observed between the work experience of the leaders and their selection of leadership styles, whereby a longer work experience showed a positive correlation with their adaptation of a transformational leadership style but not with transactional leadership attributes. Furthermore, organizational positioning had a strong correlation with the leader's choices of transformational or transactional leadership styles. Conclusively, Structural Equation Modelling (SEM) has been applied to conduct a simultaneous test of the entire system of variables in the hypothesized model to determine the extent of transformational and transactional leadership style on the organization's performance. The outcome latent construct is measured by Extra Effort, Satisfaction, and Effectiveness. Results showed that both transformational and transactional leadership style have positive outcomes on organization's effectivenss and employees' satisfaction.