"The Arab nations are blessed with oil. So it looks like God made a covenant with the Arabs". Yes, through Ismael, but only the limited physical blessing. The true covenant of the land of Israel & salvation belong to Isaac (promised legitimate son born of free woman, Sarah). The Jews are the legitimate people of God from Isaac, keeping the Mosaic law given by God on Mt. Sinai, until today.
Genesis 17:20-23, "as for Ishmael, I have heard you: I will surely bless him; I will make him fruitful and will greatly increase his numbers. He will be the father of twelve rulers, and I will make him into a great nation. 21 But my covenant I will establish with Isaac, whom Sarah will bear to you by this time next year.
Therefore, Israel nation belong to the Jews (the only group of people who keep the covenant of God, Mosaic law Torah & 10 commandments) .
