Arsene Wenger insists Arsenal can win a Barclays Premier League title challenge despite the huge spending by the likes of Manchester City.
Arsenal, in contrast, have spent just £8.5million on defender Laurent Koscielny and Moroccan striker Marouane Chamakh moved to the Emirates on a free transfer.
City have splashed out £80million on four players so far this summer in a bid to break into the top four and secure Champions League football.
But Wenger is convinced Arsenal will improve on last year's third-place finish.
"I am very confident [we'll do better than last season]," Wenger told the club's website.
"We know in England that the Premier League is the biggest league in the world and everybody invests a lot of money.
"We invest in our work, in our beliefs, in the quality of our behaviour and I am confident that will pay off. "We finished third last year and we hope we can improve on that - but the race will be tough."
Arsenal's pre-season preparations will continue against AC Milan on Friday in the Emirates Cup.
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