Pre-training Transformer-based models such as BERT and ELECTRA on a collection of Arabic corpora, demonstrated by both AraBERT and AraELECTRA, shows an impressive result on downstream tasks. However, pre-training Transformer-based language models is computationally expensive, especially for large-scale models. Recently, Funnel Transformer has addressed the sequential redundancy inside Transformer architecture by compressing the sequence of hidden states, leading to a significant reduction in the pre-training cost. This paper empirically studies the performance and efficiency of building an Arabic language model with Funnel Transformer and ELECTRA objective. We find that our model achieves state-of-the-art results on several Arabic downstream tasks despite using less computational resources compared to other BERT-based models.