The once Soviet state of Azerbaijan has become British department store Harvey Nichols’ newest overseas market.

A new seven-storey Harvey Nichols store has opened in the fast-growing capital city of Baku offering 110,000 sqft of space selling more than 500 labels in men’s, women’s, children’s and bridalwear; a cosmetics hall, perfumery, cafe, restaurant, lounge and club.

Stacey Cartwright, group CEO of Harvey Nichols, said in an interview Azerbaijanis were showing an increasing demand for luxury goods and the market was “fast becoming one of the top luxury retail destinations in the world”.

Harvey Nichols already has stores in London, Hong Kong, Saudi Arabia, Turkey, Dubai and Kuwait.

Harvey Norman Baku opens amidst esteemed neighbours, with Burberry, Armani, Valentino and Dior already operating stores in the city, and Donald Trump planning to open a hotel there in June.

Baku will host a Formula One Grand Prix on a street circuit from 2016.

Located on shore of the Caspian Sea, Baku has a population in excess of 2 million.