The opportunity cost of contracts

With many parts of the world facing instability, it is important to recognise that worries and uncertainties are not universal. Here in Dubai, where I write this, there is a palpable sense of stability, confidence, and resilience—an immunity from much of the turbulence affecting Europe and the Americas. This extends to the UAE and Saudi Arabia, positioning them as prime regions for growth. Next week, I travel to India, where optimism is similarly strong. As geopolitics continues to raise its ugly head, both of these regions are well-placed to capitalize on current instability and economic shifts.

But seizing and navigating these opportunities requires more than ambition—it demands a transformation in commercial and contracting capabilities and discipline.

Contracts: A Financial Asset

One of the biggest barriers to strong performance in these regions is the prevailing mindset around contracts. Rather than being seen as strategic levers for operational and financial performance, contracts are too often dismissed as bureaucratic nuisances or administrative formalities. Worse still, they are frequently treated as a legal function rather than a core financial tool. This means that performance lacks the guidance and integrity that comes from a well-defined contracting process.

Recent conversations – and meetings this week – suggest that this is changing, that Legal and Procurement groups in particular are frustrated by the lack of overall ownership or accountability for the contracting lifecycle. This has resulted in low levels of investment in appropriate technology and training and it results in unrewarding workload for these functions as they struggle with the consequences of poor contract management.

Ultimately, the real impact of these issues is financial – missed revenue, cost overspend, weakened cash flow. The process fragmentation which leads to these losses also creates a lack of visibility, so while others voice frustration, Finance teams are largely oblivious. A key goal at WorldCC is to help CFOs recognise the opportunity that lies hidden and ready to be grasped.