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Azerbaijan’s Urban Evolution: From Historical Heritage to Smart City Visions at the World Urban Forum

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Diplomat Magazine
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As part of its coverage on sustainable urban development, Diplomat Magazine engaged in a conversation with H.E. Mr. Mammad Ahmadzada, Ambassador of Azerbaijan to the Kingdom of the Netherlands. In his contribution, the ambassador reflected on Azerbaijan’s urban evolution and preparations to host the 13th World Urban Forum (WUF13) in 2026. He highlighted the country’s journey from a rich historical heritage to a new era of innovation, sustainability, and smart city development, offering valuable perspectives for global dialogue and cooperation.

As the world looks ahead to the 13th World Urban Forum (WUF13), to be held in Baku from 17 to 22 May 2026, Azerbaijan is preparing to showcase its distinctive path of urban transformation. From its ancient and medieval heritage to the transformative oil boom era to modern infrastructure advancements and today’s pioneering smart city initiatives, Azerbaijan offers insights that transcend its borders. This is particularly relevant as WUF13 will address pressing global urban challenges such as housing – a key concern for the Netherlands and many other countries.

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A Glorious Past: Azerbaijan’s Architectural Heritage

Azerbaijan’s urban tradition is deeply rooted in its architectural and cultural heritage, spanning from prehistoric times through the medieval era. One of the earliest testimonies to human settlement is found in Gobustan, a remarkable archaeological site renowned for its ancient petroglyphs and rock carvings dating back tens of thousands of years. The Gobustan Rock Art Cultural Landscape, recognized as a UNESCO World Heritage Site, offers invaluable insights into early human life and creativity, establishing the deep historical foundation upon which Azerbaijan’s later urban traditions were built.

Moving forward through history, the Old City of Baku (Icherisheher) – another UNESCO World Heritage Site, stands enclosed by ancient walls and features iconic landmarks such as the Maiden Tower and the 15th-century Palace of the Shirvanshahs. These monuments reflect a fusion of diverse historical periods and architectural styles, highlighting Azerbaijan’s unique position at the crossroads of civilizations.

Urban planning in medieval Azerbaijan demonstrated remarkable foresight. Cities such as Baku, Shamakhi, Ganja, Shaki, and Shusha were thoughtfully organized around caravanserais, mosques, bathhouses, and marketplaces. These urban centres featured advanced water supply systems and neighbourhood-based social structures that fostered a human-centered model long before modern planning principles emerged. Notably, the mountain village of Lahij stands out for its ancient and well-preserved urban layout, including a sophisticated water and sewerage system – parts of which date back more than a thousand years – highlighting enduring engineering ingenuity.

The First Oil Boom: A New Urban Era

The discovery of oil in the late 19th century dramatically transformed Azerbaijan’s urban landscape. Baku quickly emerged as one of the world’s first modern industrial cities, attracting architects and engineers from across Europe. Grand boulevards, eclectic architecture, and civic buildings defined this transformative era. Influenced by Beaux-Arts and Neoclassical styles, landmarks such as the Ismailiyya Palace, the Baku City Duma (now the Executive Power Building), and the Mukhtarov Palace (Palace of Happiness) helped shape Baku into a city of ambition, wealth and vision.

Urban infrastructure expanded rapidly, with tram lines, parks, and apartment buildings reflecting a new social order. This cosmopolitan architectural identity laid the foundation for further development in the mid-20th century, which introduced a distinctive style and urban planning approach characterized by monumental public buildings, expansive residential complexes, and wide avenues designed to serve a growing industrial population. Emphasizing grandiosity and symbolism of the era, this period’s architectural spirit is evident in monumental structures such as the Government House and the Gulustan Palace.

Modern Architectural Marvels: Innovation Meets Identity

The 21st century has ushered in a new wave of architectural creativity in Azerbaijan, coinciding with its nation’s independence and rapid economic growth. Baku now hosts internationally acclaimed projects that merge contemporary design with a strong sense of national identity.

Among the most iconic is the Heydar Aliyev Centre, designed by the late Zaha Hadid. Its fluid, futuristic form challenges conventional architectural norms, symbolizing Azerbaijan’s embrace of innovation. The Flame Towers, representing Azerbaijan’s historic connection with fire and energy, have become defining landmarks overlooking the Caspian Sea.

Another landmark is the Baku Crystal Hall, originally built to host the Eurovision Song Contest, which showcases cutting-edge engineering and continues to serve as a premier venue for large-scale international events. Other notable projects include the Azerbaijan Carpet Museum, designed to resemble a rolled carpet – an homage to Azerbaijan’s intangible cultural heritage – and the Baku Convention Center, which functions as a hub for global engagement.

Modern mixed-use developments such as Port Baku Residence and Mall combine luxury living with coastal views, while Deniz Mall, with its sleek design and diverse retail options, has become a premier destination for shopping and leisure. The ambitious Crescent Development Project envisions a striking waterfront complex symbolizing Baku’s forward-looking urban transformation.

Complementing these developments, numerous world-renowned five-star hotels have established a presence in Baku, enhancing the city’s appeal as a luxury travel destination and reinforcing its role on the international stage.

This wave of architectural innovation extends beyond the capital, driving modernization and regional development across Azerbaijan.

Importantly, these projects prioritize sustainability and eco-friendly principles. Extensive work along Baku’s seaside boulevard, large-scale greening initiatives, and thoughtfully designed parks underscore Azerbaijan’s commitment to environmental stewardship and sustainable development – values prominently showcased when the country hosted COP29.

Housing Challenges at the Heart of WUF13: A Shared Concern

As WUF13 highlights housing – a challenge for urban planners worldwide, including in the Netherlands – Azerbaijan’s evolving housing strategies provide valuable insights.

Rapid urbanization, especially in Baku and its surroundings, has driven rising housing demand. In response, Azerbaijan has launched integrated urban renewal projects that prioritize both functionality and aesthetics.

A flagship initiative is the Baku White City project, which transforms a former industrial zone known as Black City into a sustainable, vibrant urban district. Featuring mixed-use developments, green spaces, and modern transport connections, the project adheres to principles of environmental rehabilitation. White City stands as a model for post-industrial urban regeneration and land reclamation, relevant to Dutch cities facing similar spatial and sustainability challenges.

Another significant development is Sea Breeze, a private urban project along the Caspian coast that combines luxury coastal living with sustainable planning. This resort-style town features its own infrastructure, commercial zones, and residential areas, demonstrating how public-private partnerships can simultaneously support housing and tourism.

These high-end projects foster architectural experimentation, expand housing typologies, and create employment opportunities – key components of a comprehensive urban strategy.

Rebuilding from the Ground Up: Smart and Sustainable Urban Renewal

Azerbaijan’s most compelling urban development experience today is unfolding across its recently liberated territories. These regions, long deprived of infrastructure, have become the focus of one of Eurasia’s most ambitious reconstruction efforts.

At the heart of this process is the Policy of Great Return, a national initiative aimed at ensuring the safe and sustainable resettlement of displaced persons to their ancestral lands by providing modern infrastructure, housing, and essential social services. As part of this effort, comprehensive master plans are underway to construct dozens of new cities and hundreds of villages from the ground up, emphasizing sustainable design, smart technologies, and community-centered development, with rapid progress being made.

Key projects include:

  • Smart Villages and Cities: A flagship example is the Aghali Smart Village in Zangilan, a pilot project integrating renewable energy, digital governance, and modern agriculture – one of the world’s first post-conflict smart settlements.
  • Transportation Infrastructure: Thousands of kilometers of roads and modern highways are being constructed to connect previously isolated areas. The Fuzuli International Airport, completed in under a year, symbolizes rapid recovery and is complemented by new airports in Zangilan and Lachin. High-speed rail lines and strategically located tunnels not only enhance civilian connectivity but also strengthen regional trade – vital as Azerbaijan positions itself as a hub along the Middle Corridor linking Europe and Asia.
  • Cultural Heritage Rehabilitation: Among the most significant efforts is the restoration of Shusha, Azerbaijan’s cultural capital, a powerful symbol of national identity and resilience. The rehabilitation of Shusha and other historic sites underscores the country’s commitment to preserving its rich heritage.

These initiatives extend beyond physical reconstruction – they aim to restore community life, encourage repopulation, and stimulate economic development, aligning closely with WUF13’s core themes of inclusivity, resilience, and sustainability.

Azerbaijan and the Netherlands: Shared Urban Futures

Azerbaijan’s urban evolution presents valuable insights for Dutch planners, architects, and policymakers attending WUF13. Both countries exemplify innovative approaches to spatial challenges, ecological sustainability, and inclusive housing development. Azerbaijan’s historical adaptability – from medieval walled cities to post-oil-boom metropolises and smart rural settlements – tells a unique story of resilience. Meanwhile, the Netherlands, with its global expertise in sustainable urbanism and water management, stands as a key partner for future cooperation.

Azerbaijan’s urban journey is one of transformation – bridging past, present, and future. As WUF13 gathers global leaders to address urban challenges, particularly housing, Azerbaijan is ready to share its experience, insights, and vision. From Baku’s iconic skyline to smart villages rising in liberated territories, Azerbaijan invites the world to witness not only how cities are built, but how they are reborn.

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