This comes after footage capturing a 12-year-old girl performing a dance at the event went viral, sparking outrage on social media.
In its statement on the matter, the authority explained that following an investigation into the incident, its committee had discovered that the event's organizers had breached their contract with officials.
"The organizers added the dance segment without getting back to officials and will be fined for breaching their contract with the Entertainment Authority," the statement read.
The officials of the Entertainment Authority also stressed that they will continue to strictly oversee all events held with their permission.
Videos of the performance are still making the rounds online
People's reactions to the entire incident are mixed.
While some are outraged by the performance, others think there's absolutely nothing wrong with it, especially given the fact that the performer is a young child.
Many are in shock...
"I can't believe that this is Saudi Arabia."
Some are rather upset
"Regardless of where this happened, and even though she's a child... parents should teach their children modesty."
A few are attacking the entertainment authority
"The Authority's explanation is unacceptable. Their agenda is clear, they want to spread corruption, westernize society and liberate women."
Others don't know who to blame
"We don't know who to blame? Her parents, the audience of this show or the Entertainment Authority. People should boycott such events, you can't stop them but at least don't attend."
Not everyone is against the performance though
"This is beautiful. I hope such events spread everywhere across the kingdom."
Many reminded everyone that...
"She's just a child."