Economic growth measures the achievement of the development of an economy from one period to the next. Theoretically, government spending allocated for the public interest and public welfare will encourage an increase in per capita income that is getting bigger from year to year. Investment is essentially also the initial step in economic development activities. This study aims to determine the Effect of Development Spending and Investment on Economic Growth in North Sumatra Province. The analysis technique used is data analysis in this study using a descriptive analysis method based on the descriptions that support the analysis. The results of this study indicate that partially the government spending variable has a significant negative effect on economic growth in North Sumatra Province with a significance value of 0.0030.05. Based on the results of the simultaneous test calculation, it is known that both government spending and investment variables simultaneously have a positive and significant effect on economic growth in North Sumatra Province with a significance value of 0.030.

This study explores the evolution of Islamic economic thought from its classical roots to contemporary interpretations, highlighting significant paradigm shifts and the contributions of influential figures throughout its history. During the classical era, Islamic economic thought drew heavily from the teachings of the Qur'an and Hadith, as interpreted by scholars such as Abu Yusuf, al-Ghazali, and Ibn Khaldun. At the heart of this thinking are the principles of social justice, the prohibition of usury, and the need for a fair distribution of wealth. Recently, there have been important updates in Islamic economic thought, shaped by the global socio-economic context and the imperative to address modern economic problems. Key figures such as Muhammad Baqir al-Sadr and Umar Chapra have played an important role in developing a more relevant Islamic economic theory, combining concepts such as Islamic banking, macroeconomics, and entrepreneurship based on Islamic ethics.

Experts say that human fundamentals, including the role of the economy, must form the foundation of educational philosophy and practice. Education is both a human need and a symptom. In the sense that without education, a person cannot be considered a true human being and cannot carry out their role as a valuable human being in their daily life. Creating a flawless Muslim human being in the sense of al-insan al-kamil—that is, a person who is constantly istiqomah and continuously proficient in using their bodily and spiritual abilities to always submit to and obey Allah SWT—is the ultimate goal of the Essence of Humanity program in Islamic education.

This study aims to analyze the concept of riba in Islamic economic thought and its implications for financial stability in the contemporary era. The research employs a qualitative descriptive method by reviewing primary sources, including the Quran, Hadith, and scholars' fatwas, as well as secondary sources such as academic literature and previous research on riba and Islamic finance. The findings reveal that riba has a significant impact on economic instability and social inequality. Meanwhile, profit-sharing systems and other Islamic financial instruments offer sustainable solutions for maintaining financial stability. This research contributes to the understanding of Islamic economic principles and their practical application in addressing modern financial challenges.

Islamic economic thought experienced significant development during the Islamic Golden Age, with Muslim scholars making major contributions to global economic knowledge. During this period, thinkers such as Al-Farabi, Ibn Khaldun, and Al-Ghazali introduced concepts focused on justice, social welfare, and a balance between material and spiritual needs. Through the translation of scholarly works, many Islamic economic concepts were transmitted to Europe, which was experiencing intellectual stagnation during the Dark Ages. This influence helped revive interest in economic thought in the West, particularly during the Renaissance. However, following the Islamic Golden Age, a substantial gap emerged in economic thought development between the Islamic world and the West. As the West progressed through the Industrial Revolution and the rise of capitalism, Islamic economic thought faced a period of stagnation. This article examines the historical development of Islamic economic thought, the impact of knowledge transmission from the Islamic world to the West, and the relevance of Islamic economics in addressing modern economic challenges such as social inequality, financial crises, and the need for a more ethical and sustainable economic system.