The Egyptian winger became the Reds’ second signing of the summer last month as Jurgen Klopp moved quickly to bring the attacker to Anfield from Serie A side Roma.
Salah joins Liverpool having previously failed to hold down a regular spot at Chelsea before being shipped off to Italy by the west London club.
However, former Reds striker Owen is tipping Salah to enjoy a strong career at Anfield and feels that the 25-year-old will be a big hit at Liverpool.
Speaking to the Daily Mirror, Owen said: “I think Salah is a really good signing, he didn’t quite nail it at Chelsea, but he was young at the time.
“He’s gone away, he had a good time at Roma, he’s got outstanding pace and if you’re an attacking player with loads of pace then you’re valuable.
“I think Liverpool are now looking like a team with a real potent attack.
“They needed to bolster the squad for Champions League football, a higher standard of games, so I think it’s important that they did that.”
Liverpool are thought to still be on the lookout for a number of new signings this summer as Klopp prepares for his second full season in charge at Anfield.
The Reds have also signed striker Dominic Solanke from Chelsea but will be keen to further bolster their squad as Klopp readies his team for a return to the Champions League next season.
Liverpool finished fourth in the Premier League and without a trophy last season.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news