Bank Of Baku

Baku, the world’s oil capital: From ancient urban planning traditions to a modern urban development model-ANALYSIS

Baku, the world’s oil capital: From ancient urban planning traditions to a modern urban development model-ANALYSIS
# 12 May 2026 19:42 (UTC +04:00)

The history of urban planning in Azerbaijan is built upon rich urban traditions that have developed over centuries since ancient times. In these lands, urban culture was not limited only to the emergence of settlements, but was also formed in parallel with the development of economic relations, trade, craftsmanship and statehood traditions.

The ancient cities of Azerbaijan — Gabala, Shamakhi, Barda, Ganja and Baku — served as the region’s main economic and political centers during different periods. Archaeological studies show that these cities had street planning, market squares, water supply systems, defensive walls and public spaces. This demonstrates that Azerbaijan’s ancient urban planning school possessed a highly developed level.

Ancient urban planning traditions and Azerbaijan’s urban heritage

Historians write that the territory of the ancient city of Gabala measured hundreds of hectares, and craft workshops, residential quarters and administrative centers operated there. Clay pipes discovered during excavations prove the existence of a water supply system in the ancient city. The city of Barda was considered one of the largest cities in the Middle East in the IX-X centuries. Arab historian al-Muqaddasi described Barda as “the largest and richest city of Arran.” Merchants from various countries operated in the city, and silk, carpets and metal products were sold in its markets.

Shamakhi was also one of the Caucasus’ main urban centers during the Middle Ages. Following devastating earthquakes in the XII century, more durable construction methods were used during the rebuilding process of the city. The Juma Mosque built in Shamakhi is considered one of the oldest mosques in the Caucasus and carried the function of the city center from an urban planning perspective.

Urban planning model and planned settlement system during the Khanate period

The formation of independent khanates in Azerbaijan in the mid-XVIII century created a new stage in the history of urban planning. Cities such as Shusha, Sheki and Guba began developing not only as administrative management centers, but also as the main pillars of economic and cultural life. Shusha, the capital of the Karabakh Khanate, stood out for its strategic location and planned structure. The city was built in accordance with mountainous terrain and was surrounded by fortress walls. According to historical sources, the length of Shusha’s fortress walls was approximately 2.5 kilometers. The city’s neighborhood system, market areas and public spaces were positioned according to certain urban planning principles.

It is noted that Shusha had 17 neighborhoods, and each neighborhood had its own mosque, bathhouse and spring. This demonstrates that urban planning was organized in a planned manner not only from an architectural perspective, but also in terms of social organization. The city’s main streets led to the market square, and this planning facilitated the development of trade.

The city of Sheki was considered one of the Caucasus’ most important craftsmanship and silk production centers in the XVIII century. Caravanserais and markets operating in the city showed that Sheki played an important role in international trade relations. By the end of the XVIII century, thousands of poods of silk were produced annually in Sheki, and the products were exported to the markets of Russia, Iran and Europe.

The Sheki Khan’s Palace was an important example not only from an architectural perspective, but also in terms of urban planning. The placement of the palace in harmony with the urban space, its courtyard system and architectural solution adapted to the terrain demonstrated the high level of development of Azerbaijan’s architectural school. The absence of nails in the construction of the palace and the use of colored shebeke technology reflected the architectural mastery of that period.

In the city of Guba, the orderly layout of streets and the functional division between residential and market areas also attracted attention. The economic strength of the Guba Khanate was based on agriculture, carpet weaving and trade. Markets operating there were among the region’s main trade points.

Discovery of oil in Absheron and the beginning of Baku’s urban transformation

One of the biggest turning points in Azerbaijan’s economic and urban planning history was connected with the development of the oil industry on the Absheron Peninsula. In fact, the existence of oil in Absheron had been known since ancient times, and this natural resource influenced the formation of Baku as a settlement since the Middle Ages. Marco Polo mentioned Baku oil as early as the XIII century, while German traveler Engelbert Kaempfer provided extensive information in the XVII century about the oil fields and natural flames on the Absheron Peninsula. For centuries, people used oil in everyday life, lighting, medical purposes and even military applications.

Historical sources show that during the Middle Ages, oil wells around Baku, especially in Balakhani, Surakhani, Binagadi and Bibiheybat, were dug manually. These territories were formed not only from an economic perspective, but also as places where residential and economic activity were concentrated. New residential areas emerged around people engaged in oil extraction, while caravan routes and trade relations expanded. Thus, even before the industrial era, the oil factor in Absheron became one of the main drivers of local economic and urban development.

The Ateshgah Temple in Surakhani was also one of the most important religious and architectural monuments formed in connection with Absheron’s natural energy resources. The flames created by natural gas emerging from underground attracted merchants, travelers and pilgrims from India and Iran to the area for centuries. This caused Baku to become known not only as a trade city, but also as one of the region’s important religious and cultural centers.

During the Industrial Revolution, however, the strategic importance of oil changed completely. The extraction of kerosene created a new stage in urban lighting, while later the emergence of internal combustion engines and the use of gasoline transformed oil into the world economy’s main energy resource. This process began turning the Absheron Peninsula, and especially Baku, into one of the key points on the global industrial map. Growing international demand for oil not only expanded the city’s economic opportunities, but also accelerated the pace of its urban development.

The commissioning of the world’s first mechanically drilled oil well in Bibiheybat in 1846 is considered the beginning of the modern oil industry. This event occurred 13 years before the drilling of the first oil well in the US state of Pennsylvania. Industrial production that began in Bibiheybat changed Baku’s economic structure and accelerated the city’s transition to a new urban stage. Along with the development of the oil industry, port infrastructure expanded, new roads were built, industrial zones were formed, and Baku gradually transformed from a medieval fortress city into an international industrial metropolis.

Industrial, urban planning and demographic rise of Baku during the oil boom period

The transfer of oil fields to private entrepreneurs by Tsarist Russia in 1872 marked the beginning of a completely new stage in Baku’s economy and urban planning history. The Nobel brothers, the Rothschild family and other major industrialists began investing heavily in Baku. In addition to establishing one of the first modern oil refineries in Baku, the Nobel brothers also created a model for the parallel development of industrial infrastructure and urban space. Although the “Zoroastr” tanker they commissioned is considered a new stage in global oil transportation, this process simultaneously further increased Baku’s strategic importance as a port city.

The commissioning of the Baku-Tbilisi railway in 1883 and the construction of the Baku-Batumi oil pipeline in 1907 transformed Baku not only into an industrial center, but also into one of the region’s main logistics and transportation hubs. The Baku-Batumi oil pipeline, approximately 830 kilometers long, expanded the city’s economic influence and accelerated the development of Baku’s urban planning integrated with industrial infrastructure. The construction of ports, railway lines and warehouse complexes directly influenced the city’s functional planning.

The production of 11 million tons of oil in Baku in 1901 and the city accounting for more than half of the world’s oil production transformed Baku into one of the leading industrial centers of the global economy. The major influx of capital generated from oil changed the city’s architectural and urban planning appearance. New administrative buildings, shopping centers, banks, hotels and residential areas began to be constructed. The city was no longer confined within the framework of a medieval fortress city and was transforming into a modern industrial metropolis.

The development of the oil industry also changed Baku’s social structure. Thousands of people from different regions of the Russian Empire, Europe, Iran and Central Asia were flowing into the city. Rapid population growth made the establishment of new residential districts necessary. Baku, which had a population of approximately 13,000 in 1856, had become a major industrial city with more than one hundred thousand residents by the end of the XIX century. By the beginning of the XX century, the population exceeding 200,000 made the implementation of new urban planning approaches inevitable.

It was precisely during this period that Baku’s urban planning traditions began combining with new urban principles. The classical Eastern neighborhood system of the Old City was developing in parallel with European-style wide street and avenue planning. Functional divisions were made between administrative zones, residential districts and industrial areas. The creation of major industrial zones such as the “Black City” was an example of applying the principle of separating industrial and residential areas in urban planning.

The economic prosperity generated by oil also had a strong impact on the development of public spaces in Baku. New parks, gardens, theaters, schools and public buildings were being constructed. The expansion of the Seaside Boulevard, improvement of the city’s main streets and construction of stone buildings were transforming Baku’s urban appearance. Urban planning was no longer implemented according to the principle of random construction, but on the basis of plans prepared by architects and engineers.

The oil boom had a decisive impact not only on Baku’s economic rise, but also on the formation of urban planning culture. Baku became one of the rare cities combining the ancient urban planning traditions of the East with Western industrial urbanism and, by the beginning of the XX century, was becoming recognized not only as the world’s oil capital, but also as one of the Caucasus’ most modern urban centers.

European architectural schools and the formation of the “Baku style”

The role of foreign architectural schools in Baku’s development was particularly significant. As a result of the economic opportunities created by the oil boom, architects and engineers from Poland, Germany, France, Italy and Russia began arriving in the city. These architects brought European urban planning experience to Baku.

Polish architects occupy a special place in Baku’s architectural history. Architects such as Jozef Goslawski, Jozef Ploszko, Kazimir Skurevich and Yevgeni Skibinski became the leading specialists who transformed the city’s appearance. The Mukhtarov Palace designed by Jozef Ploszko is one of the most important examples of the synthesis between European Gothic architecture and Eastern ornaments.

The influence of the French architectural school was clearly felt in Baku’s facade decorations and balcony systems. The Italian architectural school played an important role in bringing the neo-Renaissance style to the city. German engineers participated in the construction of industrial facilities and technical infrastructure.

It was precisely as a result of the combination of all these foreign architectural schools with local Azerbaijani architectural traditions that the “Baku style” was formed. This style emerged from the synthesis of Eastern ornaments with European neoclassicism, Gothic and Baroque elements.

Oil millionaires played a special role in Baku’s architectural development. Haji Zeynalabdin Taghiyev, Musa Naghiyev, Murtuza Mukhtarov, Seyid Mirbabayev, Isa bey Hajinski and the Sadikhov brothers invested large amounts in the improvement of the city. Musa Naghiyev had more than 90 buildings constructed in Baku. Haji Zeynalabdin Taghiyev financed the construction of schools, theaters and public buildings.

From the Boulevard to the “White City”: Baku’s modern urban development and the WUF13 perspective

The Seaside Boulevard, established in 1867 on the basis of a project by architect Gasim bey Hajibababeyov, laid the foundation for a new urban stage in Baku’s urban planning history. Initially measuring approximately 3 kilometers in length, the boulevard became not only a recreational area, but also the center of the city’s public and social life. Parks, green belts and walking areas created along the Caspian coast accelerated Baku’s transition to a healthier and more livable urban model. This approach later became one of the main directions of urban planning traditions.

Along with the rapid development of the oil industry, the need emerged in Baku to separate industrial and residential areas. The “Black City” established for this purpose was considered one of the region’s largest industrial zones by the end of the XIX century. For the first time, principles of functional zoning were applied there, with industrial facilities separated from residential districts. This marked the beginning of the planned development model in Baku’s urban planning.

The rapid expansion of Baku also made the preparation of the city’s first Master Plan necessary. The plan prepared by architect Nikolai von der Nonne aimed to create an integrated urban model between the Old City, new residential districts, industrial zones and port infrastructure. Wide streets, administrative buildings, public spaces and communication lines were now being formed on the basis of a unified urban planning approach.

By the end of the XIX century and the beginning of the XX century, Baku was no longer a city known only for the oil industry. Theaters, schools, hospitals, newspaper editorial offices and cultural institutions operated there. The launch of the electric tram in 1898 transformed Baku into one of the Caucasus’ most modern cities. The city was developing as a rare center combining Eastern architectural traditions with European urbanism.

This historical line of development continues in the modern period as well. The reconstruction today of the territory of the “Black City,” known as an industrial zone in the XX century, within the framework of the “White City” project demonstrates the continuous character of Baku’s urban transformation. Modern Baku is no longer only an energy center, but is also turning into an international urban platform where sustainable development, green city concepts, smart infrastructure and modern architectural principles are applied.

It is precisely from this perspective that Baku’s hosting of the World Urban Forum – WUF13 carries particular importance. This forum is an important platform for demonstrating Baku’s ancient urban planning traditions and modern urban development model at the international level. The line of development stretching from the Old City to the architectural heritage of the oil boom period, and from there to the modern “White City” and green urbanization projects, reveals the continuous and multifaceted character of Baku’s urban planning history.

The Azerbaijani urban planning traditions formed over centuries, the economic rise created by the oil industry in Absheron, and modern urban transformation have today turned Baku into one of the cities at the center of global attention. Baku is no longer only the capital of “black gold,” but also acts as a global urbanism center combining ancient heritage with modern urban planning concepts.

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