Saying that Israel in the Middle East wouldn't make your claim any more correct. And now that you want to shift gears to a question of productivity per capita, you're in no better shape.

Israel GDP per capita: US$31,969
Saudi GDP per capita: US$50,284

Israel does quite well economically, although its relatively high standard of living is in large part due to special consideration Israel is given by foreign nations. However to suggest that it's the most industrialized or productive nation in the region is wrong.