Khazar Islands

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Khazar Islands, also known as Caspian Islands, is a stalled plan to build 41 artificial islands about 25 kilometers south of Baku, Azerbaijan, in the Caspian Sea. The project would cover roughly 30 square kilometers and was meant to become a new city for up to 1 million residents.

The development was designed to be a colossal project worth about $100 billion. It would include 150 bridges, a large airport, and a centerpiece Azerbaijan Tower that would be among the tallest buildings in the world. The city would have 150 schools, 50 hospitals, parks, shopping centers, a university, and a Formula 1–style racetrack. Apartments were planned to cost around $4,000–$5,000 per square meter, and the plan aimed to attract investors from the United States, Turkey, Arab countries, and China.

Construction began in 2011, and by 2014 the main beach area opened while much of the infrastructure was still under construction. The oil price crash of 2015 exposed the project’s enormous scale and funding needs. Ibrahim Ibrahimov, head of Avesta Group, was briefly arrested over a debt issue with the International Bank of Azerbaijan. After his release, officials said the project would still be completed, with potential completion windows of 2020–2025 and later statements suggesting continued work.

As of January 2026, there are no signs that construction has resumed. Many experts doubt the project will be finished on the originally planned timeline, with some predicting completion only after 2030 or possibly never.