That’s according to Gunners ‘Invincible’ Robert Pires, who has sympathy for Emery’s plight.
Arsenal could have boosted their transfer budget had they qualified for the Champions League.
But an end of season slump saw the Emirates outfit finish fifth and lose the Europa League final to London rivals Chelsea.
Yannick Carrasco and Bournemouth winger Ryan Fraser have been heavily linked with a move to Arsenal.
But Pires is of the opinion that the Gunner’s squad needs far more investment if they are to compete with the likes of Liverpool and Manchester City.
“I read that Arsenal have a small envelope for transfers, only £40m,” he said. “My opinion is that it isn’t enough.
“If you want to build a good team, you need to spend a lot of money, especially in the Premier League.
“I respect Arsenal’s position and the owner, but everybody knows that if you want to win the Premier League, you need to spend a lot of money.
“All the top clubs want to sign great players, but if you want a great player it costs a lot of money.”
Arsenal loaned some up-and-coming youngsters to Bundesliga clubs last season to see them gain vital experience.
Reiss Nelson earned plaudits at Hoffenheim while Emile Smith Rowe’s spell at RB Leipzig was unfortunately hampered by injuries.
But Pires is encouraged by the young talent coming through the ranks and would like to see Emery give them a chance next season.
“After getting his first season out of the way after replacing Arsene Wenger it’s a new era for Arsenal and for Unai,” he continued.
“Unfortunately we lost Aaron Ramsey and Danny Welbeck. Maybe we need to rebuild, make a new team, and why not with the young players?
“I hope some young players come through into the first team. Freddie Ljungberg did very well with the Under-23s and won the league.
“We have good young players and the right man heading the Academy in Per Mertesacker.
“So maybe the solution, if Arsenal have only £40m, is to bring in some young players and prepare for the future.”