Baku is the capital city of Azerbaijan. It is also the largest city of the country. Nestled on the Caucasus region and the Caspian Sea, the city lies about 28 meters below the sea level as a result of which, it is also the lowest lying National Capital in the world. Situated on the southern shore of the Absheron Peninsula alongside the Bay of Baku, nearly one forth of the inhabitants of the country reside in the metropolitan region of the city. The city is cultural, scientific and industrial center of Azerbaijan. A number of sizeable Azerbaijan institutions also have their headquarters located there.