Ten-man Arsenal came within a minute of claiming their first win at the Etihad Stadium since 2015 but a late John Stones equaliser saw them have to settle for a point after an incredible performance.
A crazy opening 45 minutes saw Erling Haaland hand the hosts a ninth-minute lead but Arsenal fought back and after a rocket from Riccardo Calafiori on his full debut drew the visitor level before Gabriel once again headed in a corner to get Arsenal in front.
However in the final second of the half Leandro Trossard was controversially dismissed for a second bookable offence for delaying the restart, leaving the visitor to battle with 10 men for 45 minutes.
Despite relentless pressure, Arsenal held firm for all of those and six of the seven added on at the end of the half, but John Stones scrambled home an equaliser to deny Arsenal a famous win.
Arsenal will now switch attention to the Carabao Cup on Wednesday when Bolton Wanderers arrive for the first of four successive fixtures at Emirates Stadium.
Leicester City follow them up on Saturday before the Champions League returns to N5 with the visit of Paris Saint-Germain on Tuesday, October 1.