The teenager is being questioned after being accused of "improper public behaviour" in Jeddah, a statement said.
It is not clear what his nationality was or if he will be formally charged by the public prosecutor.
Earlier this month a singer was arrested for "dabbing" during a concert in the south-west of the country.
In the 45-second clip the teen can be seen disrupting traffic while dancing to the popular 1990s hit song. The clip was believed to have been first posted in July 2016.