The most common and most likely answer to this crossword clue is the 7 letter word TEHERAN
I've seen this crossword clue in The Daily Telegraph
T
E
H
E
R
A
N
More clues leading to the result TEHERAN
- Earthen crocks in Persian city
- Working near the capital
- Eastern woman’s entering light shade in capital
- A number embrace goddess? That’s capital!
- Moves near the capital
- City state her analysis covers
- Moving near the foreign capital
- Capital charged following case of terrible explosive
- Article round the East managed capital here
- Corruptly earn the foreign capital
Buddy explains!

The straight part
We know that "foreign capital" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case foreign capital = teheran.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.