DUBAI – A survey of about 500 companies in the Gulf across industries forecast a salary raise of five percent in the UAE, 5.6 percent in Qatar and six percent in Saudi Arabia during 2013 — which will remain above the forecast inflation rates, the “Total Remuneration Survey 2012” by global consultancy Mercer said. Companies will increase salaries in all levels of hierarchy because of competition to acquire and retain talent, the study said. Multinationals operating in the UAE are paying up to 13 percent more than local companies in terms of base salaries, according to Zaid Kamhawi, Mercer's IPS Business Leader in the Middle East. “The salary increases we anticipate in the region are higher than what we see in developing countries and above inflation,” said Kamhawi. “This is a clear reflection of the growth expected by Middle Eastern companies and an indication of their need to retain quality talent.” Firms will be on aggressive recruitment mode, with 60 percent of companies surveyed looking to hire by the end of the year and 70 percent aiming to increase headcount by 2013, the report said. However companies are still cautious due to the impact of regional and global events. – SG/Agencies