Baku (Azerbaijani: Bakı), sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal parts: the downtown and the old Inner City (21.5 ha). Baku's urban population at the beginning of 2009 was estimated at just over two million people.
Baku is divided into eleven administrative districts (raions) and 48 townships. Among these are the townships on islands in the Baku Bay and the town of Oil Rocks built on stilts in the Caspian Sea, 60 km (37 mi) 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 there, including SOCAR, one of the world's top 100 companies and others. The Baku International Sea Trade Port, sheltered by the islands of the Baku Archipelago to the east and the Absheron Peninsula to the north, is capable of handling two million tons of general and dry bulk cargoes per year. Baku is currently bidding to host the 2020 Summer Olympics.
Azerbaijan (i/ˌæzərbaɪˈdʒɑːn/ az-ər-by-jahn; Azerbaijani: Azərbaycan), officially the Republic of Azerbaijan (Azerbaijani: Azərbaycan Respublikası) is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to the south. The exclave of Nakhchivan is bounded by Armenia to the north and east, Iran to the south and west, while having a short borderline with Turkey to the northwest.