The Procedure of Arbitration of ICSID about Umbrella Clause

The umbrella clause is one of the most common conditions in investment treaties that contain maximum protections for the investor. The purpose of reviewing the arbitration procedure of this clause in the ICSID is if the parties of the investment treaty wish to include this clause in their treaty how and if they decide to include this condition in their contract, the ICSID has which view on writing, the purpose and the consequences of the inclusion of this clause in the investment treaty and ultimately what decision it makes regarding the treaty and consequently the Umbrella clause. In the arbitration procedure of this institution, there are two views on the Umbrella clause, one being a broad interpretation and the other is limited interpretation. The expansive interpretation develops the competence of the ICSID in dealing with investment disputes and the consideration of the obligations or on the other hand leads to qualification and vice versa, the adoption of a limited interpretation creates a limitation on the jurisdiction of this authority or disqualification, resulting in the widespread support resulting from the adoption of a broad interpretation of the Umbrella clause to the investor. This kind of interpretation can be preferred. The research method is the library method.