The detainee, identified by local media as an Egyptian national, was also accused of "taking up a post exclusively reserved for Saudis", under rules dictating which jobs may be taken by expat workers.
The Ministry reported that the owner of the hotel was caused due to non-compliance with state regulations that stipulate gender-segregative workplace.
Another said: "A man arrested in Saudi Arabia after having breakfast with a woman". At one point, she feeds the man a piece of food. It has sparked outrage in a country which considers it unlawful for a woman to spend time with a man who is not her relative.More news: Herald Sun doubles down on Serena Williams cartoon deemed racist
"The labour ministry arrested an expatriate in Jeddah after he appeared in an offensive video", the ministry said in a statement, adding that the pair's employer was summoned.
The man and woman are said to be employees of a hotel in Saudi Arabia. Women and men are not allowed to sit together unless they are close relations.
"He [The Egyptian man] was punished, while the Al Saud princes who embrace women and spend money looted from the people go unpunished".
Women are exempted from carrying out most outside activities without being accompanied by a man, father, husband, brother or son.More news: Putin Proposes Peace Treaty With Japan Before Year's End
But many people in Egypt reacted with surprise at the outcry from Saudi Arabia and wonder how anyone could be arrested for such an innocuous video.
After the widely shared video sparked backlash from conservative critics, the Public Prosecution urged expats in the Muslim kingdom to respect the "values and traditions of Saudi society", the Guardian reports.
Among a number of social reforms spearheaded by Crown Prince Mohammed bin Salman, women have been granted the right to drive, but activists are facing a clampdown on dissent.More news: Prince Harry and Meghan Markle tour of New Zealand confirmed