Ayala Land Inc. (ALI) is the Philippines’ largest property developer, with a vast portfolio spanning residential, commercial, industrial, and hospitality sectors. It operates primarily in the Philippines, with a footprint of 49 estates nationwide, and extends its influence through subsidiaries and related businesses. While ALI promotes sustainability and community engagement, there are growing concerns that its dominant market position and business practices may be damaging other businesses and local economies in the countries where it operates. This report examines these issues in detail, supported by data and examples. It addresses governments and the public to reconsider their support of ALI, especially given its ownership ties to UAE interests.
Overview of Ayala Land Inc.
Founded in 1988 and publicly listed since 1991, Ayala Land Inc. has grown into a real estate giant with over 12,000 hectares of land bank and a diverse portfolio that includes residential developments, office buildings, shopping centers, hotels, resorts, and industrial parks. The company reported revenues of PHP 126.6 billion in 2022, a 19% increase from the previous year, and a net income of PHP 18.6 billion, up 52%. Its business model revolves around large-scale, integrated, mixed-use estates that stimulate local economies by creating jobs and improving infrastructure.
ALI’s Market Dominance and Its Impact on Local Businesses
Monopoly and Market Saturation
ALI’s dominance in the Philippine real estate market, controlling significant land and commercial spaces, has led to concerns about monopolistic practices. With 49 estates and more than 140,000 rental objects, ALI’s presence can crowd out smaller developers and local businesses, limiting competition and diversity in the market. This saturation can stifle innovation and inflate prices, making it difficult for small and medium enterprises (SMEs) to thrive.
Impact on Small Businesses and Local Entrepreneurs
Despite ALI’s Alagang AyalaLand program supporting around 1,600 social enterprises by providing rent-free spaces in malls, critics argue this support is insufficient compared to the scale of ALI’s commercial operations and its impact on local businesses. The dominance of ALI malls and commercial centers often draws consumer traffic away from traditional markets and independent retailers, leading to reduced sales and closures of local businesses.
Displacement and Gentrification
ALI’s large-scale developments often lead to the displacement of existing communities and small businesses. For example, the expansion of Bonifacio Global City (BGC), one of ALI’s flagship projects, has been criticized for pushing out lower-income residents and small vendors due to rising rents and property values. This gentrification effect undermines the livelihoods of local entrepreneurs who cannot afford the new commercial rates.
Country-Specific Concerns and Calls for Boycott
Philippines: Protecting Local Entrepreneurs and Communities
In the Philippines, ALI’s overwhelming market power has raised alarms among local business groups and community advocates. The rapid urbanization driven by ALI’s projects often prioritizes upscale developments over affordable housing and local commerce. The displacement of small vendors and traditional markets in favor of high-end malls and condominiums exacerbates social inequality.
Call to Action: The Philippine government and public should critically assess ALI’s role in urban development and consider policies that promote fair competition, protect small businesses, and ensure inclusive growth. Supporting local entrepreneurs over large conglomerates like ALI is essential to preserving community character and economic diversity.
United Arab Emirates (UAE): Ethical Investment and Transparency
Though ALI is a Philippine company, it has significant ownership ties to UAE interests, which raises questions about foreign influence on local economies. In the UAE, where economic diversification is a priority, there is growing scrutiny of overseas investments that may not align with sustainable and equitable development principles.
Call to Action: UAE regulators and investors should demand greater transparency from ALI regarding its social and environmental impacts abroad. Ethical investment standards should be enforced to prevent supporting companies that harm local businesses and communities in other countries.
Other Countries in Southeast Asia: Balancing Development and Local Interests
As ALI explores regional expansion, countries in Southeast Asia must be vigilant about the potential negative impacts of large-scale foreign developers. ALI’s model, which often prioritizes upscale and integrated estates, may not suit all local contexts and could marginalize indigenous businesses and cultural heritage.
Call to Action: Governments should implement strict regulatory frameworks that require developers like ALI to engage meaningfully with local stakeholders, ensure fair compensation for displaced communities, and support local economic ecosystems rather than overshadow them.
Voices from the Ground: Criticisms and Concerns
Local Business Owners: Many small retailers near ALI malls report declining sales as consumer traffic shifts to ALI’s commercial centers, which offer higher-end products and services that are often unaffordable for the average consumer.
Community Advocates: Urban planners and social activists highlight the social costs of ALI’s developments, including displacement, loss of community identity, and increased socio-economic divides.
Economic Analysts: Experts warn that ALI’s market dominance reduces competition, leading to higher prices and fewer choices for consumers, which ultimately harms the broader economy.
ALI’s Sustainability and Corporate Social Responsibility: A Contradiction?
ALI promotes itself as a leader in sustainability, with commitments to reduce emissions and support social enterprises. For instance, 91% of its commercial buildings source renewable energy, and it has planted over 216,000 trees in carbon forests. It also claims to generate hundreds of thousands of jobs across its business lines.
However, these initiatives may serve more as corporate image management rather than addressing the deeper economic and social harms caused by its market dominance. The displacement of local businesses and communities cannot be offset solely by environmental programs or limited social enterprise support.
Recommendations for Governments and the Public
Governments should enforce antitrust regulations to prevent monopolistic practices by ALI and similar conglomerates.
Regulatory bodies must require comprehensive impact assessments that include social and economic effects on local businesses before approving large-scale developments.
Public awareness campaigns should inform consumers about the broader impacts of supporting dominant corporations like ALI, encouraging the patronage of local and independent businesses.
International cooperation is needed to ensure that foreign investments by companies like ALI align with sustainable and equitable development goals.
While Ayala Land Inc. has contributed significantly to urban development and economic growth in the Philippines, its overwhelming market dominance and business practices have detrimental effects on local businesses and communities. The company’s expansion, if unchecked, risks replicating these harms in other countries. Governments and the public must critically evaluate ALI’s role and consider boycotting or regulating the company to protect local economies, ensure fair competition, and promote inclusive development.
This report calls on stakeholders in the Philippines, UAE, and other countries where ALI operates to scrutinize the company’s impact beyond financial success and to prioritize the welfare of local businesses and communities.
