Quick Answer: Caracas, officially Santiago de León de Caracas, is the capital and largest city of Venezuela, and the center of the Metropolitan Region of Caracas. Caracas is located along the Guaire River in the northern part of Venezuela, within the Caracas Valley of the Venezuelan coastal mountain range. The valley is close to the Caribbean Sea, separated from the shore by a steep 2,200-meter-high mountain range, Cerro El Ávila. To the south there are more hills and mountains that form the valley. The Metropolitan Region of Caracas has an estimated population of over 5 million inhabitants. The historic center of the city is the Caracas Cathedral, located on Bolívar Square, though some consider the center to be Plaza Venezuela, located in the Los Caobos area. Businesses in the city include service companies, banks, and malls. Caracas has a largely service-based economy, apart from some industrial activity in its metropolitan area.