[6][9] The president of the controlling Avesta Group of Companies, Ibrahim Ibrahimov, reportedly had the original idea in a flash while flying between Baku and Dubai.

[10][11][12] He told reporters that American, Turkish, Arab, and Chinese investors had showed interest in the project, which he described as being like a "new Venice".

[1][4] Construction on Khazar Islands began in March 2011 and substantial building works were achieved during Azerbaijan's economic boom.

[14] After Ibrahimov's release, company statements later insisted that the project was still scheduled to be completed between 2020 and 2025 with investors from China cited as keen to fill the funding gap.

[15] In October 2017 Ibrahimov was reported to have restarted his work with Avesta and declared that he would not leave Azerbaijan but raised doubts as to the continuation of the Khazar Islands project [16] and As of February 2025[update], there is no sign of any construction resuming.