Construction companies in UAE have started their annual sustainability reporting from 2021 in line with UAE government’s policy. The main aim of this research is to examine the effect of sustainability reporting on financial and market performance of construction-based companies in UAE from 2018 to 2023. Financial performance is analyzed using profitability ratios; ROA, ROE, cost efficiency ratio, and market performance proxied by PE ratio. A comparison of the financial and market performance was made between the period before and after sustainability reporting by companies. Data has been analyzed using Wilcoxon signed-rank test and paired sample t-test for the selected performance measures. This study reveals that there is a significant difference in PE ratio of the companies in the period after sustainability reporting. This indicates that there is an improvement in market performance of the construction companies that have started sustainability reporting.