It wasn't merely during the "dawn of civilization" that Arab countries were dominant.
While Europe was going through the Dark Ages, the Arab countries were going through their own renaissance, keeping alive much knowledge that Europe lost during that time, as well as creating much on their own.
However, the fanatic aspects of Islamic rule have taken hold in many places, and even the less fanatic better off Arab places walk a fine line, and are always on the edge due to activism by the more extreme factions.
Muslim fanaticism and activism(even extending to terrorism) is a very wide spread problem, reaching from Africa all the way to the Pacific Ocean, and resulting in political turmoil and violence in more different countries than any single other political or religious ideology.
While there are certainly places where things are bad, and Islam has nothing to do with it, those are generally places with very corrupt regimes and low national wealth (Haiti, for example).