Iwobi has become a regular for Arsenal this season and his performances have drawn praises from fans and pundits alike.
Ozil thinks the 20-year-old has a natural flair and skills of Okocha and the passing ability and positional sense of Dutch legend Edgar Davids.
“Alex reminds me of a mixture of him (Okocha) and Edgar Davids,” Ozil told the Gunners' matchday programme.
“He's really strong on the ball, also defensively, but he's good in front of goal too.
“He's developing really well and if he continues the way he's been playing for the whole season, he will enhance his game.
“The manager knows exactly how good he is and I wish him all the best.”
Iwobi who is a nephew to Nigerian football legend, Okocha became a full Nigeria international earlier this year.
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After representing England at the youth level, the youngster was torn with the decision of which country to represent at the senior level.
After choosing to play for the Super Eagles of Nigeria, Iwobi revealed that Okocha played a major part in his decision.
“Ordinarily I would have loved to play for England since I have played for all the under-aged teams up to the U- 19, but (for) Austin Okocha, my mother’s relation, who I respect a lot for his exploits with the Super Eagles and most especially for his records with Bolton Football Club,” the Arsenal player once said in an interview.
Iwobi is set to start again for Arsenal as they travel to face Burnley in the Premier League on Sunday, October, 2.