One historical factor is that they have a high reliance on foreign workers in highly skilled industries. This talent comes and goes. This can't be changed overnight, and the education system does have a strong religious component that is likely not going away. I've also read that culture impedes the receptiveness of young men to education.
Another factor is that crude oil travels better. Some of the more lucrative products have a limited shelf life. Gasoline's life is measured in months.
What I want to know is, if oil is so cheap there, why isn't there more manufacturing of petroleum based products there?