Why is the standard of living in Israel higher than in most of the Arab countries bordering on it?

Because immediately after the Arab-Israeli war of 1948-1949, vols., The socialists came to power in Israel. Thanks to socialist policy, US assistance, attracting high-class specialists, selfless labor of Israelis, Israel managed to create an advanced industry, develop agriculture, establish infrastructure and provide the population with social benefits and a European standard of living.
And in the Arab countries, poverty and backwardness prevailed for a long time, despite the abundant oil resources available. Once they learned how to extract oil and export it, the living standards of the population improved significantly, although many medieval traditions are still preserved there.