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The most widely accepted theories are that the city is either a pre-Earthfall colony of ancient Azlant, which might have survived the destruction of its parent empire, or a city established by followers of the ancient Azlanti queen and future demon lord Zura in the depths of the jungle.
If the statue fell in a straightforward fashion, then it pointed into the heart of the Mwangi Jungle, into a region in which no relics of Azlant have ever been found.
If it twisted when it fell, it could have been pointing anywhere – including towards the Arcadian Ocean, in which case Zurakai lies somewhere beneath the waves, along with the rest of the Azlanti Empire.