Azerbaijan, the Land of Carpet and Oil

7 min readJan 7, 2025

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When I first told people I was going to Azerbaijan, the response was almost always: “Aze-what? Where on earth is that?” I have to admit, the country’s branding and marketing aren’t as strong as they could be. But it’s not for lack of effort.

When I landed at Baku Airport, I noticed promotional videos playing on repeat, showcasing Azerbaijan’s diverse attractions. On social media, the official tourism account @experienceazerbaijan is updated almost daily with beautiful content. Yet, despite these efforts, Azerbaijan’s tourism image seems overshadowed by the ongoing geopolitical tensions with Armenia between 2020–2023.

For many tourists, Baku is either a brief stopover for the annual Formula 1 race — with racing enthusiasts often claiming the city’s track is more exciting than those in Monaco or Singapore — or Azerbaijan is skipped entirely in favor of neighboring Georgia and Armenia.

In contrast, my journey began with a clear intention: to visit Azerbaijan first. My motivation was twofold: to reconnect with a friend from Baku I hadn’t seen in eight years, and to finally see the iconic Heydar Aliyev Center, designed by Zaha Hadid — a building I’ve dreamed of visiting since my days studying interior architecture.

Thankfully, my friend encouraged me to extend my travels to include Georgia and, yes, even Armenia. What started as a trip to see one country evolved into an unforgettable two-month Grand Caucasus Tour — a journey that enriched my perspective far beyond what I had initially planned.

Azerbaijan v Armenia

You will not be able to avoid the topic of Armenia when looking up Azerbaijan. I am no expert in Caucausian geo-politics but here’s an oversimplified summary of century-long feud between Azerbaijan and Armenia.

The Architectural Story of Baku

Baku, the capital and economic hub of Azerbaijan, isn’t just a city — it’s a living museum of history, shaped by three dominant architectural styles. While Azerbaijan only gained independence in 1991 (we’re the same age!), the stories embedded in Baku’s architecture go back centuries. Walking through the city, you’ll encounter three distinct architectural styles, each reflecting a different era of Baku’s past:

1. Ancient Baku: The Old Town (Icherisheher)

The Old Town, also known as Icherisheher (İçərişəhər in Azerbaijani), dates back to at least the 12th century. This UNESCO World Heritage Site of stone-walled ancient enclave can be explored on foot through its narrow, labyrinthine streets. Its cobblestone pathways and centuries-old buildings might remind you of King’s Landing from Game of Thrones (yes, I know it was filmed in Dubrovnik).

What sets it apart from other historical centers around the world is its authenticity. Unlike many old towns that are increasingly commercialized around the world and end up displacing the residents, the Baku Old Town is still largely inhabited by locals. To this day, around 3,000 people live within its walls.

2. Oil Boom Era (late 1800s-early 1900s)

Azerbaijan’s oil industry actually predates the oil discoveries in the Middle East and by the early 20th century, Baku was producing half of the world’s oil supply.

This oil rush transformed Baku from a modest city of 3,000 people to over 300,000 by 1903. Wealthy oil barons — both local and foreign — commissioned grand European-style buildings, heavily influenced by Art Nouveau, Neoclassicism and Baroque influences.

Many Polish architects, including Józef Płoszko and Kazimierz Skórewicz, played a significant role in shaping Baku during this era. While on a walking tour, even Polish travelers couldn’t help but exclaim: “This building looks Polish… and that one too!”

and duly noted by Polish travellers that were in my walking tour “This building looks Polish, and that too!” The discovery of oil brought European flair to Baku architecture.

This period brought a European flair to Baku, blending grandeur with local cultural touches.

3. Modern Baku (Early 2000s — Present)

In the mid-2000s, the Azerbaijani government embarked on an ambitious plan to modernize Baku’s skyline and symbolize the nation’s cultural and economic renaissance. This era introduced iconic architectural landmarks designed to reflect Azerbaijan’s future aspirations. Key projects include:
• Heydar Aliyev Center by Zaha Hadid (Completed in 2012)
• Flame Towers (Completed in 2012)
• Baku Crystal Hall built to host Eurovision (Completed in 2012)
• Baku Boulevard Expansion. The historic Seaside boulevard was expanded and modernized in the 2000s, becoming one of the longest urban waterfront promenades in the world
• SOCAR Tower is the 209-meter skyscraper that is now one of the tallest buildings in the Caucaus (Completed in 2016).
• Port Baku Towers and Port Baku Mall combine luxury residential buildings, high-end retail spaces, and commercial offices

These projects represent more than just architectural feats — they embody Azerbaijan’s ambition to establish itself as a global player in tourism, commerce, and cultural influence.

4. Soviet Architecture — Subdued Legacy

Compared to its neighbors, Georgia and Armenia, Baku has fewer prominent examples of Soviet-era architecture. The city’s Soviet structures are often overshadowed by the grandeur of the 3 abovementioned architecture styles. However, remnants of Soviet architecture still remain, offering a glimpse into an era defined by functionality, monumentalism, and ideological symbolism.

Compared to Georgia and Armenia, Baku has comparatively fewer Soviet architecture, which is largely overshadowed by the architecture above. If you walk around the city, you’ll see Government House (Dom Sovetov) (Completed in 1952) — One of Baku’s most iconic Stalinist buildings and Baku Railway Station (1950s), Hilton Baku.

While many Soviet buildings are still in use, some have been renovated, repurposed, or overshadowed by modern skyscrapers.

Controversy of Four Seasons Hotel Baku

The Four Seasons Hotel Baku, while now an iconic symbol of luxury and grandeur in the city, carries a controversial legacy. Its construction resulted in the demolition of a section of Baku’s historic Old City wall (Icherisheher) — a UNESCO World Heritage Site.

During the hotel’s development, concerns were raised by preservationists and cultural heritage advocates about the impact on the integrity of the ancient city walls, which date back to the 12th century. Despite these concerns, part of the wall was removed to accommodate the hotel’s footprint and architectural design.

While the Four Seasons Hotel undeniably adds to Baku’s modern skyline and tourism appeal, this incident serves as a reminder of the delicate balance between urban development and heritage preservation. It remains a contentious chapter in Baku’s urban planning narrative, highlighting the ongoing tension between modernization and protecting historical legacy.

Economic Development

While higher than most of South East Asia, Azerbaijan’s aggregate GDP per capita is $7,640 — significantly lower than the average across Central Asia and the South Caucasus ($9,480) and below the levels in neighboring Georgia ($8,830) and Armenia ($8,580) — which is a contrast considering Baku looks significantly more ‘modern’ than Tblisi and Yerevan.

In addition, Azerbaijan’s labor market is dominated by agricultural and service sectors, however most of the GDP is produced in oil-dependent sectors. In fact, agriculture’s contributions to GDP have plummeted from 32 percent in 1994 to under 5 percent in 2022. How is this relevant you may ask? This shows that the economic benefits of oil boom have been spread unevenly. Rural areas, in particular, have continued to suffer from higher levels of poverty, stagnant wages, and underemployment.

Consequently, there has been substantial internal migration from rural to urban areas: by early 2024, Azerbaijan’s urban population stood at 54.5 percent of the country’s total. This rural emigration has led to “a concomitant process of stagnation and recession in the countryside”. This concentration underscores Baku’s significance as Azerbaijan’s primary hub for political, economic, and cultural activities, much like Jakarta has become the centre for all those things for Indonesia. To the eye of first time travellers, the development of Baku is jarring compared to anywhere outside the capital city.

Baku Oil and Nobel Prize

he world’s first industrial oil well was drilled in 1847 at Bibi-Heybat, on the outskirts of Baku, Azerbaijan. By the turn of the 20th century, Azerbaijan was producing over half of the world’s oil’s supply. During the Soviet era, Baku remained a major oil supplier, though production eventually declined. Oil quite literally fueled the rise of modern Baku.

The Nobel family’s connection to Baku’s oil industry began with Robert Nobel, one of the famous Nobel brothers. During a visit to Baku, Robert recognized the immense commercial potential of the Caspian oil fields. He persuaded his brother Ludvig Nobel to join him in exploiting these resources, and in 1876, they established an oil company called Branobel.

While Robert returned to Sweden due to health concerns, Ludvig Nobel remained in Baku and played a pivotal role in developing the region’s oil industry. He introduced several technical and commercial innovations, including pipelines for oil transportation and oil tankers built in sections in Sweden and assembled on the Caspian Sea.

Ludvig became a prominent figure in pre-revolutionary Russia, not just for his contributions to industry but also for his progressive labor practices. He introduced profit-sharing systems and actively worked to improve working conditions for factory employees. The Nobel brothers’ network of petroleum storage sites across Russia helped establish Baku as a key hub for oil exports to Europe, China, India, and Iran.

While Alfred Nobel is best remembered as the inventor of dynamite and the founder of the Nobel Prize, his legacy is intertwined with Baku’s oil wealth. When Alfred passed away in 1896, he left behind a $265 million endowment to fund the Nobel Prize. According to Togrul Bagirov, chairman of the Baku Nobel Heritage Foundation (BNHF), archival records suggest that 20–22% of the Nobel Foundation’s initial funds came from Alfred’s shares in Branobel.

If Bagirov’s claims are accurate, it raises an intriguing point: without Baku’s oil, the Nobel Prize as we know it might not exist today.

Of course, the Nobel legacy carries a contradiction. Alfred’s dynamite revolutionized industries and construction but also had devastating military applications. In an ironic tragedy, Alfred’s younger brother, Emil Nobel, died during an experiment with nitroglycerin — a grim reminder of the explosive’s lethal potential.

This history invites reflection: Can acts of generosity truly wash away the stains of past harm? The Nobel Prize, celebrated for advancing humanity through science, literature, and peace, owes part of its foundation to both innovation and destruction — a paradox that lingers in its legacy.

Todaym you can visit the Nobel House Museum in Baku, also called Villa Petrolea.

Books on Azerbaijan

Stories act as windows into a country’s cultural and national identity and this is especially true for Azerbaijan, where literature has played a significant role in shaping and preserving its national character.

Here are some must-read literary works that will help you truly understand the heart and soul of Azerbaijan.