Michael has been charged with attempting to import a commercial quantity of drugs, and conspiracy to do the same while Fadi is accused of funding the alleged syndicate and dealing in the proceeds of crime in excess of $1 million.
The 39-year-old Micheal chose not to appear in court on Monday and did not apply for bail, and it was formally refused by the magistrate.
However his older brother Fadi, 43, was granted bail.
"This applicant, Mr Ibrahim, was not a passive lender ... but an active investor in his brother's operation," Kalyk said.
"It is clear the funds that were sourced from Mr Ibrahim went to assist his brother Michael financing the Dubai transaction," he added.
The raids allegedly uncovered more than 1.9 tonnes of narcotics that were to be imported to Australia, including 200 kilograms of MDMA, or ecstasy, and 80 kilograms of cocaine.
Along with the brothers, two other Australians, Mostafa Dib, 34 and Koder Jomaa, 47, were also arrested in Dubai last month after a series of raids in Australia, the United Arab Emirates and the Netherlands returned to Sydney under police escort.
The four men have been charged with a range of offences including conspiracy to import a commercial quantity of drugs, which carries a maximum penalty of life imprisonment.
In August, police raided the Dover Heights home of John Ibrahim but did not charge him with an offence.
His girlfriend a nightclub owner was charged with possessing a Glock pistol after police raided her home and his son, Daniel Taylor, 26, was also charged with transferring $2.25 million to facilitate the illegal importation of tobacco.
Both his girlfriend and Taylor were released on bail later. (ANI)