The Gunners aren’t expected to have much cash to splash during the transfer window.
It’s thought around £40m will be made available to the Spanish chief.
Parlour insists Emery should put his faith in youth – just like Spurs manager Mauricio Pochettino, who hasn’t made any new signings in the previous two transfer windows.
“The club have always been run like this,” Parlour said. “The fans know exactly what happens.
“It’s another opportunity for these youngsters to get a chance”
“It’s another opportunity for these youngsters to get a chance.
“Reiss Nelson is one who sticks out. You’ve got Emile Smith-Rowe as well.
“I think the fans love the youngsters to get an opportunity – and that’s a road Arsenal might have to go down.
“Everybody wants big signings, but it’s got to be the right player.
“£40m is not a lot, but you’ve seen what happened at Spurs where they didn’t go out and spend money.
“When Emery came in, he knew exactly what the situation was.”
Former midfielder Edu Gaspar is widely expected to join Arsenal in the coming weeks as a technical director.
The 41-year-old is currently general manager for the Brazil national team but looks set to sign once their involvement in the Copa America is over.
Freddie Ljungberg, meanwhile, has been promoted to assistant manager.
Parlour says the duo could breathe new life into the north Londoners.
“Edu was a very good player and underrated,” he added. “He has got a great reputation and connections in south America and Europe.
“The recruitment is crucial at any club. Manchester United have had that problem and it’s about getting the right person to highlight the players and then get them in.
“Ljungberg is going to be on the first-team coaching staff – and he knows the youngsters very well.
“You want to see some of the old players involved and they’ve both been in successful Arsenal teams.”
Emery could face a battle to keep his star men, though.
Lucas Torreira has been linked with a return to Italy and Pierre-Emerick Aubameyang is being eyed by clubs in China.
“Sometimes if they want to go and leave there’s not a lot you can do about it,” Parlour warned.
“You want them to stay. But if they’re not happy, the performances on the pitch won’t be as good as they should be.”
Aubameyang was a standout performer last season and shared the Golden Boot with Sadio Mane and Mohamed Salah after scoring 22 goals.
The Gabon international has clicked Alexandre Lacazette and Parlour says their friendship has been a crucial.
“Him and Lacazette up front have got a really good relationship together,” he said.
“On and off the pitch they respect each other and you can see that with the goal celebrations.
“This time of year there’s so many rumours about, but Aubameyang is on a good contract and he looks like he’s enjoying his football.”
* Ray Parlour was speaking at the McDonald’s & FA Fun Football Festival at Ryan FC. These festivals are taking place across the UK this summer, giving thousands of children the chance to enjoy the game. Find your nearest festival at www.mcdonalds.co.uk/funfootball