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Umbrella clause is a clause in bilateral investment treaties (BITs) which guarantee the observance of obligations by host state entered with investors. This clause enables the investor to have direct recourse before arbitral bodies and elevates contractual breaches to a treaty breach, which will in turn attract the international responsibility of the host state. This book will discuss the advent of umbrella clause under international law and its subsequent adaptation by various BITs. The study has used both doctrinal and non-doctrinal method of legal research. Ethiopia has signed thirty one BITs out of them 35% of such BITs have had an umbrella clause. However, the Ethiopian BITs are marked by double standard (dissimilar) treatment in relation to umbrella clause. This book raised the following principal questions. What are the policy and legal implications of dissimilar treatment of umbrella clause under Ethiopian BITs? Is that a matter of bargain, strategic partnership or another? What would be the implication as to state responsibility when inclusion or omission of umbrella clause is made in Ethiopian BITs? Finally, the book discussed the Ethiopian investment climate & its banes.