Arabs, their often, fanatical, intolerant religion aside, long ago gave up on competing with Jews to run a democracy, to create a civilization or to create wealth.
On some fundamental level, most of them believe they are inferior to Jews, and that the only way to compete with them is rob them of their wealth, their independence, their sovereign nation, and their very lives.
Believing that they are inferior to Jews, and thus can never catch up or be successful, they have given up trying to better themselves and their people. This pessimistic self-lie, this bleak self-appraisal, keeps them down and back.
On some level, Jews mostly believe and accept that they are God's chosen people, that they are exceptional, that they are worthy of being successful, so they might as well work hard, thus making it true.
All people, more or less are God's people, that are worthy, esteemed and so loved by God, that God demands of each that she live as a living angel, and be very successful.
None are inferior, but many fail to perform. Arabs, modernize, pacify and moderate Islam, and maverize. Then you will be able to compete with Jews, and anyone, anywhere. Go for it.
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