Wenger said he was glad he persevered with Iwobi, who has come off the bench four times in the Premier League this season, after recognising the Nigeria international's raw talent a few years ago.
"He is a boy who, two years ago, not many would have said he (will make it). You see he develops very well because he's very clever," Wenger told the club's website (www.arsenal.com).
"I like his game, I like the timing of his decision making and the quality of his decision making. He always turns where you want him to turn and he plays the ball where you want him to play the ball. He's very interesting."
The Gunners, who were drawn at home to Hull City in the fifth round, are third in the league, three points behind leaders Leicester City after 23 games.
Arsenal will hope to make ground on Claudio Ranieri's charges when they host eighth-placed Southampton in the league on Tuesday with Leicester welcoming Liverpool at the same time.
(Reporting by Shravanth Vijayakumar in Bengaluru)
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