The Gunners were the busiest of the top six clubs in the summer transfer window as Unai Emery continued his overhaul of the north London side’s squad.
Arsenal signed Brazilian teenager Gabriel Martinelli, Saint-Etienne centre-half William Saliba, Celtic full-back Kieran Tierney and Chelsea FC defender David Luiz.
The Gunners smashed their transfer record to sign Ivory Coast international Nicolas Pepe in a £72m deal from Ligue 1 side Lille last month.
Emery snapped up Spain Under-21 international Dani Ceballos on a season-long loan from Spanish giants Real Madrid.
Arsenal made a strong start to the Premier League season with a 1-0 victory over Newcastle United at St James’ Park on Sunday afternoon.
Former Liverpool FC defender Carragher believes Arsenal are capable of launching a serious top-four challenge this term.
“I’m looking at Arsenal,” Collymore told The Last Word podcast.
“Not so much as in I think they are going to challenge for the title, I still think they will be there or thereabouts in the top four.
“But when you think about the pessimism after the Europa League final and how far they were away from Chelsea in that game. And there is talk of £40m to spend which isn’t a great deal of money.
“You could look at at it and think maybe Arsenal are being clever telling people that they had £40m to spend. I don’t know what they’ve actually spent, they have got the [Alex] Iwobi money back so maybe it is around that figure.
“But they seem to have done a lot of business and come out a lot healthier than people, certainly Arsenal fans, were fearing.”
Arsenal finished in fifth spot in the Premier League table in their first season under Emery’s management.
The Gunners suffered a 4-1 loss to Chelsea FC in the Europa League final back in May.
Former Paris Saint-Germain manager Emery took over the reins from Arsene Wenger in May 2018.
Arsenal will return to Premier League action with a clash against Burnley in Saturday’s early kick-off at The Emirates.
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