The singer, who's one of the TV program's judges, hugged Gaseri to congratulate him on winning the show during its final prime which was broadcast live on SBC channel.
Footage capturing the moment then went viral on Saudi Twitter and sparked a controversy that has yet to quiet down.
Many were angered by the singer's actions and accused her of violating the ultra-conservative kingdom's values and traditions.
However, many others were having none of it and defended the star, deeming the congratulatory hug normal and spontaneous.
Here's a little of what people had to say on the matter:
Some labelled it a "scandal"
Others were shocked
"I can't believe this, Waed."
"Respect Saudi society and the country's reputation"
"Not even MBC did anything like this. Ahlam never kissed and hugged contestants like this."
Many even called on authorities to take action against the singer
"What's happening to people's minds? She must be held accountable over this?"
Not everyone attacked the singer though
"She sees him as a son."
Some defended her and raised this important point
"This show has been on air for months and no one even noticed it but suddenly you're all focused on this clip of Waed with the contestant. Now they're playing their favorite role, calling on her to be punished. This is the only thing they're good at."