Sarajevo (ˌsærəˈjeɪvoʊ ; Сарајево, sǎrajeʋo; see names in other languages) is the capital and largest city of Bosnia and Herzegovina, with a population of 275,524 in its administrative limits. The Sarajevo metropolitan area including Sarajevo Canton, East Sarajevo and nearby municipalities is home to 555,210 inhabitants. Located within the greater Sarajevo valley of Bosnia, it is surrounded by the Dinaric Alps and situated along the Miljacka River in the heart of the Balkans, a region of Southern Europe.
Sarajevo is the political, financial, social and cultural center of Bosnia and Herzegovina and a prominent center of culture in the Balkans. It exerts region-wide influence in entertainment, media, fashion and the arts. Due to its long history of religious and cultural diversity, Sarajevo is sometimes called the "Jerusalem of Europe" or "Jerusalem of the Balkans". It is one of a few major European cities to have a mosque, Catholic church, Eastern Orthodox church, and synagogue within the same neighborhood.
Although there is evidence of human settlement in the area since prehistoric times, the modern city arose in the 15th century as an Ottoman stronghold when the latter empire extended into Europe. Sarajevo has gained international renown several times throughout its history. In 1885, it was the first city in Europe and the second city in the world to have a full-time electric tram network running through the city, following San Francisco. In 1914, it was the site of the assassination of Archduke Franz Ferdinand by a local Young Bosnia activist Gavrilo Princip, a murder that sparked World War I. This resulted in the end of Austro-Hungarian rule in Bosnia and the creation of the multicultural Kingdom of Yugoslavia in the Balkan region.
Later, after World War II, the area was designated the capital of the communist Socialist Republic of Bosnia and Herzegovina within the Socialist Federal Republic of Yugoslavia, leading to rapid expansion of its population and businesses with investment in infrastructure and economic development.