Ashtiyeh won the Arab Journalism Award for his coverage of clashes in the village of Kfar Qaddum on the occupied West Bank between Palestinians and Israeli forces on March 4, 2016.
The award was handed out at the closing session of the regional Arab Media Forum conference Tuesday night.
Ashtiyeh's photograph shows a man huddled over a child to pick him up from the ground, as an Israeli soldier stands pointing his rifle in the background.
Ashtiyeh also won an honorable mention at the NPPA awards in the United States for another picture of the same incident.
Lebanese journalist Ghassan Charbel, editor-in-chief of the pan-Arab daily Ash-Sharq Al-Awsat, was awarded the prize in Dubai for top journalist.
Saudi online news portal Sabq took home the prize for best online journalism.
The Arab Journalism Award hands out prizes worth $305,000 (279,000 euros) in total.
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