Detectives arrested the Fairfield East man at Sydney International Airport about 3.30pm on Sunday before he could fly overseas.
Police said the man was "attempting to flee the country".
He was taken to Surry Hills Police Station where he was charged with murder and refused bail.
The man will appear in Downing Centre Local Court on Monday.
Mr Sabbagh was shot last month while sitting in a car with his son in what police described as a callous, gangland-style killing.
The 40-year-old father was outside the Elite Fight Force mixed martial arts gym in Sefton just after 6.30am on March 2 when he was shot multiple times in the chest, police said.
Despite the efforts of NSW Ambulance paramedics, Mr Sabbagh died at the scene.
His 12-year-old son, who was in the passenger seat of the vehicle at the time, was physically unharmed.
Police later found a burnt-out Mazda 3 about a kilometre away in neighbouring Birrong.
Police will allege in court the Fairfield East man was involved in the planning and co-ordination of the murder of Mr Sabbagh.
Investigations under Strike Force Pemak are continuing.
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