Transfer learning with a unified Transformer framework (T5) that converts all language problems into a text-to-text format has recently been proposed as a simple, yet effective, transfer learning approach. Although a multilingual version of the T5 model (mT5) has been introduced, it is not clear how well it can fare on non-English tasks involving diverse data. To investigate this question, we apply mT5 on a language with a wide variety of dialects--Arabic. For evaluation, we use an existing benchmark for Arabic language understanding and introduce a new benchmark for Arabic language generation (ARGEN). We also pre-train three powerful Arabic-specific text-to-text Transformer based models and evaluate them on the two benchmarks. Our new models perform significantly better than mT5 and exceed MARBERT, the current state-of-the-art Arabic BERT-based model, on Arabic language understanding. The models also set new SOTA on the generation benchmark. Our new models and are publicly released at https://github.com/UBC-NLP/araT5 and ARLGE will be released through the same repository.