Given that the US pours a lot of money into Egypt as well, and pays the entire defense bill more or less for Saudi Arabia, why are these countries much less successful than Israel?
Further, Israel has to spend grotesquely much on defense due to that their nice neighbours want to wipe them off the map. Thgat the US pays for some of this can't explain the success of Israeli economic performance. Or do you think Norway would be third world without oil?
Culture matters. I know it's not in accordance with your political ideology to say so, but facts must take precedence over ideology. If you think the two graphs below are completely unrelated, then you are deluding yourself.
[qimg]http://2.bp.blogspot.com/_-EMpadQx4hM/TR0vXpkUahI/AAAAAAAAAZI/xPzTJT8u70w/s1600/hours.png[/qimg]
[qimg]http://upload.wikimedia.org/wikipedia/en/thumb/7/79/Personal_income_race.png/365px-Personal_income_race.png[/qimg]
(Median income.)
Here, some statistics from Sweden. Are you bold enough to guess which Middle Eastern group that is the most successful in our society?
[qimg]http://3.bp.blogspot.com/_-EMpadQx4hM/TQvpfhs3uaI/AAAAAAAAAX8/ftumCIhZ6G8/s1600/iran2.jpg[/qimg]