1 Introduction This study would be completed to analyse the cause effect and relationship among profitability and capital structure of the banking industry of UAE and for this specific study mainly focused banks are Emirate NBD and Abu Dhabi Islamic bank. Furthermore, the comparative analysis of capital structure with the profitability of the banking industry would be presented in the study. 2 Industry overview It has been reported by UAEFB, (2017) that banking industry of UAE established in 1980 and the central bank is responsible for making policies such as the monitory policy of the UAE. The assets of the banking sector have been increased and it is rebooting with the time. Assets of UAE banking sector has been increased to 8.1%.