Baku is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. Baku is located 28 metres (92 ft) below sea level, which makes it the lowest lying national capital in the world and also the largest city in the world located below sea level. Baku lies on the southern shore of the Absheron Peninsula, alongside the Bay of Baku. At the beginning of 2009, Baku's urban population was estimated at just over two million people. Officially, about 25% of all inhabitants of the country live in Baku's metropolitan area. Baku is the sole metropolis in Azerbaijan.

It lies on the western shore of the Caspian Sea and the southern side of the Ab?eron Peninsula, around the wide curving sweep of the Bay of Baku. The bay, sheltered by the islands of the Baku Archipelago, provides the best harbour of the Caspian, while the Ab?eron Peninsula gives protection from violent northerly winds. The name Baku is possibly a contraction of the Persian bad kube ("blown upon by mountain winds"). Baku derives its importance from its oil industry and its administrative functions.

Baku is divided into twelve administrative raions and 48 townships. Among these are the townships on the islands of the Baku Archipelago, and the town of Oil Rocks built on stilts in the Caspian Sea, 60 kilometres (37 miles) away from Baku. The Inner City of Baku, along with the Shirvanshah's Palace and Maiden Tower, were inscribed as a UNESCO World Heritage Site in 2000. According to the Lonely Planet's ranking, Baku is also among the world's top ten destinations for urban nightlife.

The city is the scientific, cultural, and industrial center of Azerbaijan. Many sizeable Azerbaijani institutions have their headquarters here. The Baku International Sea Trade Port is capable of handling two million tons of general and dry bulk cargoes per year.[9] In recent years, Baku has become an important venue for international events. It hosted the 57th Eurovision Song Contest in 2012, the 2015 European Games, 4th Islamic Solidarity Games, the F1 Azerbaijan Grand Prix since 2016, hosted the final of the 2018–19 UEFA Europa League, and will be one of the host cities for UEFA Euro 2020. The city is renowned for its harsh winds, which is reflected in its nickname, the "City of Winds".
 

• The total land area of Baku is 820 square miles (2,130 square kilometres) and its population was 2,374,000 in 2015
• Baku is one of only two capital cities that are officially below sea level and is located 92 ft below sea level
• Baku enjoys a temperate semi-arid climate with strong winds throughout the year, warm and dry summers, cool and wet winters, a large temperature variation and an average annual temperature of 15.1°C
• It has been an ancient trade route since Roman times where goods would be traded between Central Asia and the west
• Baku is the largest city in the Caucasus Region and the largest on the Caspian Sea
• Baku's Old City is its historic heart and dates back to at least the 12th century, with some scholars believing it to date back to the 7th century AD
   

The Office of the President of Azerbaijan is the executive administration of President of Azerbaijan. The office is in charge of fulfilling the constitutional responsibilities of the President. The Office of the President of Azerbaijan was established with the declaration of independence of Azerbaijan on October 18, 1991. The construction of the building, initiated by the First Secretary of Communist Party of Azerbaijan SSR Heydar Aliyev and supervised by project manager Fuad Orujov and architects Tahir Allahverdiyev and Madat Khalafov, was started in 1978 and completed in 1986.

It was then occupied by the Central Committee of the Communist Party of Azerbaijan. After the restoration of Azerbaijan's independence in 1991, the building was assigned to the President of Azerbaijan and his administration and it was renamed the Presidential Palace in 2003. The Office of the Head of the Presidential Administration of Azerbaijan was headed by Ramiz Mehdiyev, and currently is headed by Samir Nuriyev. The Politics of Azerbaijan takes place in a framework of a semi-presidential republic, with the President of Azerbaijan as the head of state, and the Prime Minister of Azerbaijan as head of government.

Executive power is exercised by the president and the government. The state system of Azerbaijan defines the Constitution of the Republic of Azerbaijan. According to the constitution, Azerbaijan is a democratic, secular, unitary republic. President is the head of the state and head of the executive branch.

The President appoints all cabinet-level government administrators and heads of local executive bodies. Since 2008, the Constitution of Azerbaijan was amended, abolishing any term limit for the office of President. Last Constitutional reform took place in September 2016 and introduced the institute of vice presidency. According to the Constitution of the Republic of Azerbaijan, the President of the Republic of Azerbaijan is the head of state and has executive power.

The President of the Republic of Azerbaijan represents the country in internal and external affairs. The President of the Republic of Azerbaijan ensures the independence, territorial integrity of Azerbaijan, guarantees compliance with international treaties. The President in Azerbaijan is elected for a 7-year term on the basis of general suffrage. Any citizen of the Republic of Azerbaijan has the right to vote, who has been living in Azerbaijani territory for more than 10 years, has a higher education and does not have dual citizenship and obligations to the other states, and also not convicted for a serious crime, can become a presidential candidate.

The decision to dismiss the President of the Republic of Azerbaijan is put before the National Assembly on the initiative of the Constitutional Court on the basis of the Supreme Court's decision. The resolution on dismissal of the president is adopted by the majority of the votes of the deputies of the National Assembly and within 7 days is signed by the chairman of the Constitutional Court. The President has the right to immunity. The Vice-President of Azerbaijan is a group of posts following the President of the Republic of Azerbaijan.

The President himself appoints and dismisses the first vice-president and vice-presidents. With the early resignation of the president, within 60 days, as long as new elections are organized, the president's powers are fulfilled by the First Vice-President of Azerbaijan. Any citizen of the Azerbaijan Republic with a higher education who has the right to vote and has no obligations to other states can become a vice-president of Azerbaijan. The National Assembly of Azerbaijan is the legislative branch of government in Azerbaijan.

Every year, Milli Majlis of the Republic of Azerbaijan holds two regular, spring and autumn, sessions. Extraordinary sessions of Milli Majlis of the Republic of Azerbaijan will be summoned by the Chairman of Milli Majlis of the Republic of Azerbaijan at request of the President of the Republic of Azerbaijan or 42 deputies of Milli Majlis of the Republic of Azerbaijan. An assembly of the session of the Milli Majlis may be closed to the public upon the claim of 83 members of parliament or the proposal by the President of the Republic of Azerbaijan. The Nakhchivan Autonomous Republic is a constituent part of Azerbaijan with its own elected parliament consisting of 45 deputies.

Judicial power is administered by the Constitutional Court, the Supreme Court, the courts of appeal, ordinary and specialised courts. The Supreme Court of Azerbaijan is a supreme judicial body on civil, criminal and other cases related to the execution of general and specialized courts. The Constitutional Court of Azerbaijan is the supreme body of constitutional justice on the matters attributed to its jurisdiction by the Constitution, with authority to interpret and apply the Constitution of Azerbaijan. The Constitutional Court consists of nine judges appointed for a non-renewable 15-year term.

Judges of the Constitutional Court of the Republic of Azerbaijan are appointed by Milli Majlis of the Republic of Azerbaijan on recommendation by the President of the Republic of Azerbaijan. The 2003 Law on the Constitutional Court defines the Court's activities, as well as the status and duties of its judges. The courts in the Nakhchivan Autonomous Republic are part of the court system. The Nakhchivan Autonomous Republic Supreme Court serves as the appeal instance and its rulings are considered in classification by the Supreme Court of Azerbaijan.

Judges possess Constitutional immunity and may be called to criminal responsibility only in accordance with law. Local self-government in Azerbaijan is governed by municipalities. Elections to municipalities and the status of municipalities are established by the National Assembly of the Republic of Azerbaijan. Within the framework of the sovereignty of the Republic of Azerbaijan, municipalities are independent in exercising their powers. Every citizen of the Republic of Azerbaijan, who has the right to participate in elections and who permanently resides in the respective constituencies, may be elected as a member of the municipality.

The basis of Baku’s economy is petroleum. The presence of oil has been known since antiquity, and by the 15th century oil for lamps was obtained from surface wells. Modern commercial exploitation began in 1872. The Baku oil field at the beginning of the 20th century was the largest in the world, and it remained the largest field in what was then the Soviet Union until the 1940s. By the late 20th century, much of the easily extractable reserves had been exhausted; drilling was subsequently extended far underground and outward across the Ab?eron Peninsula and into the seabed. After Azerbaijan became independent, foreign companies contracted to explore for other potentially lucrative sites and develop them, and new refineries were established. Many derricks stand in the gulf facing the city. Most of the subordinate townships are drilling centres, linked by a network of pipelines to the local refineries and processing plants. From Baku oil is piped to Batumi on the Black Sea or sent by tanker across the Caspian and up the Volga River. Besides oil processing, Baku is a large centre for the production of equipment for the oil industry. Metalworking, shipbuilding and repair, the manufacture of electrical machinery, the production of chemicals and construction materials, and food processing also contribute to the local economy.

By industrial institutions and individual entrepreneurs operating in this field, in January–November 2017, industrial production was 29.9 billion manat or was 3.7 percent less than in comparison the same period of the previous year.

Food production in the manufacturing sector increased by 2.0 percent, drinks by 23.4 percent, production of textile industry by 9.9%, clothing industry by 10.3%, leather goods, footwear production by 61.3 percent, paper and cardboard production by 27.9%, chemical production by 44.7%, production of pharmaceutical products by 2.6 times, production of Rubber and Plastics Products by 8.4 percent, production of building materials by 18.1%, metallurgy industry by 5.1%, electrical equipment production by 14.1%, machinery and its materials production by 47.1%, furniture production by 37.9%, jewelry, musical instruments, sport and medical equipments by 30,1%. The volume of production increased by 24.3 percent in the sector of production distribution and supply of electricity, gas, and steam, water supply, waste treatment and processing sector by 20.9 percent. The large part of the industrial products was sent to consumers, as of December 1, 2017, the final product covered 181.9 million manat in the warehouses of industrial enterprises, taking into account the reserves of previous years.

In January–November 2017, 12331.2 million manat or 3,35% fewer funds than in comparison the same period of 2016 were directed to capital assets. 8841.9 million manat or 71.7% of the funds directed to the capital assets were used for the construction and installation work. Oil and gas extraction, shipbuilding, steel, mechanical engineering and chemical industry are the main branches of heavy industry in Baku. In addition, the city has specialized in oil-gas machinery manufacturing. The enterprises such as Baku deep sea water piles plant , plant named after Sattarkhan, Keshla engineering plant, and Binagadi clay and steel plants produce the necessary parts of oil machinery. There are also radio electronics factories, car and shipbuilding plants operating in the city. Gozdak, Shuvalan, Korgoz quarries that are located around the city manufacture sawn stones. Ferroconcrete construction plant, asbestos, brick, plants and Garadagh cement plant produces materials for the construction industry.Clothing industry constitutes a considerably important part of the light industry of the city. At the same time there are shoe and leather plants in Baku. Baku-Glass LLC , Baku Sewing House , Caucasus Paper Industry LLC and other enterprises are operating in the city.

The total cost of production in the mining industry decreased by 3.6 percent compared to January–November of the previous year and amounted to 24.4 billion manat. 81.5 percent of the industrial production was produced in the mining sector, 16.2 percent in the manufacturing sector, 1.6 percent in electricity, gas and steam production, distribution and supply sector, 0.7% in the water supply, waste treatment and processing sector. Extraction of crude oil, the main product of the field was 34.9 million tons, natural gas commodity extraction was 16.6 billion kub meters. Oil production in the mining sector decreased by 6.2 percent, as well as commercial gas production decreased by 2.2 percent. Construction of Baku Higher Oil School new campus, new administrative building of Narimanov District Court, bridge in the Pirallahi district, «Pirallahi» Solar Power Plant, Balakhani Industrial Park, Baku-Tbilisi-Kars Railway, Pirshagi-Novkhani road, Binagadi-Novkhani-Corat highway completed in Baku in January–November 2017.
 

Throughout history the transport system of Baku used the now-defunct horsecars, trams and narrow gauge railways. As of 2011, 1,000 black cabs are ordered by Baku Taxi Company, and as part of a programme originally announced by the Transport Ministry of Azerbaijan, there is a plan to introduce London cabs into Baku. The move was part of £16 million agreement between Manganese Bronze subsidiary LTI Limited and Baku Taxi Company.Local rail transport includes the Baku Funicular and the Baku Metro, a rapid-transit system notable for its art, murals, mosaics and ornate chandeliers. Baku Metro was opened in November 1967 and includes 3 lines and 25 stations at present; 170 million people used Baku Metro over the past five years. In 2008, the Chief of Baku Metro, Taghi Ahmadov, announced plans to construct 41 new stations over the next 17 years. These will serve the new bus complex as well as the international airport. Baku Railway Station is the terminus for national and international rail links to the city. The Kars–Tbilisi–Baku railway, which directly connects Turkey, Georgia and Azerbaijan, began to be constructed in 2007 and opened in 2017. The completed branch will connect Baku with Tbilisi in Georgia, and from there trains will continue to Akhalkalaki, and Kars in Turkey.

Sea transport is vital for Baku, as the city is practically surrounded by the Caspian Sea to the east. Shipping services operate regularly from Baku across the Caspian Sea to Turkmenbashi in Turkmenistan and to Bandar Anzali and Bandar Nowshar in Iran. The commuter ferries, along with the high-speed catamaran Seabus , also form the main connection between the city and the Absheron peninsula.Baku Port was founded in 1902 and since then has been the largest Caspian Sea port. It has six facilities: the main cargo terminal, the container terminal, the ferry terminal, the oil terminal, the passenger terminal and the port fleet terminal. The estimated costs are 400 Million US$. From April to November Baku Port is accessible to ships loading cargoes for direct voyages from Western European and Mediterranean ports. The State Road M-1 and the European route E60 are the two main motorway connections between Europe and Azerbaijan. The motorway network around Baku is well developed and is constantly being extended. The Heydar Aliyev International Airport is the only commercial airport serving Baku. The new Baku Cargo Terminal was officially opened in March 2005. It was constructed to be a major cargo hub in the CIS countries and is actually now one of the biggest and most technically advanced in the region.