Norway's capital city boasts a spectacular setting at the head of a 110km (70-mile) long fjord. One of the best ways to approach Oslo is by sea with the journey taking you along scenic fjords where fishing boats jostle with cruise liners and luxury yachts. Whilst sailing through luscious green islands and outcrops the city unfolds before your eyes - sprawling out from its compact centre around the quays to the flanks of the surrounding hills.

Drenched with historic charm, Oslo is the oldest of the Scandinavian capitals and was founded around 1050 by Norwegian king Harald Hardråde. The look of the city was intrinsically shaped by these early founders, as seen in the imposing castle and fortress of Akershus Slott, which was built in the late 13th century by Håkon V Magnusson.

Originally Oslo was a wooden city, but after a roaring fire in 1624 it was burned to the ground. However, keen to rekindle the city's former glory, King Christian IV ordered a rebuild and the city was renamed Christiania in his honour - a name it kept for 300 years.

Perhaps due to these early tribulations, Oslo is not noted for grand architecture. However, much of the city's history can still be seen in medieval buildings like Akershus Slott, which stands across a park from the austere angular bulk of the 1930s-style Rådhus (City Hall). A highlight is the Slott (Royal Palace), which elegantly dominates the view west along Karl Johans Gate past the Storting (Parliament).

As the city grew in size so did its importance as a major financial, military and administrative centre. The subsequent development of shipping, industry and forestry helped give it the dominant role that it still enjoys in the nation's economy.

In more recent years Oslo has undergone further expansion due to a boost in the city's financial standing from the wealth created by the discovery of vast oil reserves in the North Sea during the 1960s. This has prompted a modern architectural face-lift, which is reflected in the development of the bustling docks and the lively retail and leisure sector around Aker Brygge - a transformed former warehouse area along the quay.

The population of just over half a million is small for a major city, but with its late-night shopping, crowded cafes, pubs, restaurants and theatres playing to full houses, Oslo has a self-assured and cosmopolitan feel with a lively nightlife and growing investment in arts and culture. With the influx of oil money, Oslo has become a thriving and vibrant city where visitors can enjoy a whole host of activities, from cross-country skiing in the freezing winter months to relaxing on the fjord's many beaches during the gloriously long summer days.