City, who could have gone 16 points clear of their hosts with a win, had a Phil Foden goal disallowed, while Liverpool manager Juergen Klopp was shown a red card for remonstrating with a linesman after a tackle on Salah.
Mikel Arteta's side have 27 points from 10 games with City and Tottenham Hotspur on 23.
Chelsea are in fourth spot with 19 points, with a game in hand, thanks to a 2-0 win at Aston Villa courtesy of a double by England midfielder Mason Mount.
Manchester United are fifth with 16 points from nine games after drawing 0-0 at home to sixth-placed Newcastle United, who have 15.
Despite Arsenal's flying start to the season the popular theory is that relentless City are primed to claim a fifth title in six seasons.