Newcastle were 19th in the league when Howe was appointed in November 2021 but have been reborn ever since.
Howe’s side are currently third in the table and can close the gap on leaders Arsenal to six points if they win at Emirates Stadium on Tuesday.
“A very good team, really well coached,” said Arteta.
“I think what Eddie has done in that short period of time, when you look at the numbers... incredible. Big credit to him and the coaching staff.
“And then they have created a belief, a momentum around the team that they play the same way against any opponent. We will start to prepare for that game and it’s going to be another big test. But we play at home in front of our crowd and I’m looking forward to it.”
Arsenal are in the driving seat in the Premier League title race as they sit seven points clear of Manchester City in second.
Gunners fans are now dreaming about winning the title for the first time since 2004 but, when asked for his aspirations for 2023, Arteta said: “To win against Newcastle.
“And then the next one and then the next one. That is the dream. And obviously that all my loved ones and everybody around the club feels healthy and satisfied and enjoys life, which is beautiful.
“The way we are performing, obviously it is impressive and we are really happy with that, but as well we set the objectives in the short term and what we want to improve and what is making us win that many football matches.”