The two sides go head-to-head in London on Tuesday for the first leg of their Champions League preliminary round clash.
"We've had all the time we need to prepare every detail of this meeting," said the Slovenian international.
"I saw the second half and Newcastle did well, clamming up then trying to hit them on the break, but every game is different.
"We know Arsenal are a strong side, as they prove it every year in the Champions League, but we're not afraid of them. Even if Cesc Fabregas, Samir Nasri and Robin Van Persie were to play, we wouldn't fear Arsenal.
"The tempo of the Premier League is different to Serie A and we have to be wary of the atmosphere at the Emirates. We're facing a young side, but I think we'll have our chances and the important thing is to score in London.
"It is certainly an advantage to play the second leg on home turf," continued Handanovic.
"We always did well against the big clubs in Serie A, so I am confident. Anyone who plays football has to be optimistic."