Al-Hakba:Community Savings in Yemen
This term, Al-Hakba, is not a spur of the moment in Yemen. It is a great societal practice and has a great impact. Many Yemenis have relied on it to fulfill countless needs. Over 92% of Yemenis know about it. It has been like a savior in many difficult circumstances as it is the beginning of many life projects for ordinary employees and middle-income people.
Normally within different cities, a woman from a residential neighborhood moves around to tell women during any social occasion that she intends to start doing Al-Hakba and determines the number of people to join this participatory savings project and the set amount. This woman usually takes the first turn in receiving, in exchange for her adoption of the idea, following-up the participants to pay the monthly amount, and coordination between the participants. Nevertheless, the first position might change to another person who is in dire need of the amount, such as a person needing treatment, wanting to get married, or having a debt whose time has come to be paid. It is worth noting that this process is proceeding without any benefits for anyone, even if he/she is the one who leads the group.
Everyone is obligated to pay the due amount within the specified date, yet it remains an exceptional case that the majority pay before the deadline if they know whoever will take the amount is going through an emergency circumstance. It is regarded as a moral duty and social responsibility in the first place.
Al-Hakba is a colloquial word in the Yemeni accent expressing a cooperative community activity for a specific group of people who monthly pay a particular amount of money, then each person receives whatever they have paid at least once a year, the financial cycle of individuals. This activity takes place either within the same neighborhood, with colleagues, or with the same family as it may last for years sometimes. Al-Hakba is paid according to what is agreed. Some pay on a daily, weekly, or monthly basis, and these are the workers who work on a daily or weekly basis or monthly-paid employees, respectively. Similarly, it is received on a daily, weekly, monthly, or annual basis.
The history of Al-Hakba is not accurately mentioned, though the Arab heritage books cited this subject, as it was called “Al-Jumu’ah” (Friday) where money was collected every Friday. It should be noted that this cooperative community practice is widespread in many Arab countries. Some Yemenis believe this idea originated in Yemen, as it was the most important home for people in the Middle East, and the Yemeni society is a civilized society throughout history. However, another group believes this idea came from overseas primarily from Ethiopia because of the historical migrations of Yemenis to it or from India or East Asia for the same reason. Some justify that the Yemeni society, since ancient times, did not have money in a way that could make them think of saving, rather they had food of all kinds and goods exchange occurred instead of paying money.
Alaa with his daughter
Seventy percent of a random sample - 100 young men and women from different cities in Yemen - have participated in Al-Hakba activity. At least 10% of them have been participating in this activity for more than 15 years. Moreover, 40% of them said they know at least 6 people from their friends who participate in this practice and do not believe there are any risks that may appear in this activity. Furthermore, 30% normally participate with 20% of their salaries while 16% participate with half of their salaries. The reasons for joining this community practice vary as 30% of the participants aim to buy assets like a car or home furniture while 26% pay off previous loans, and some youths participate for the purpose of marriage and purchasing a house. The idea of participation is widespread in the community, and more than 3 people within the same family may participate in various Hakbas. Surprisingly, 67% of respondents have not withdrawn more than once, while 15% reported that scams sometimes happen. A third of them add that the war in Yemen has greatly affected the continuation of this community practice, and they themselves said that the persistent salary interruption and the weakness of the Yemeni currency intensified this impact.
Alaa, a young man in his twenties, teaches English at a specialized institute south of Sana’a, and studies medical management at a public university. He says that he was first thinking of studying in Europe and hence worked hard to participate in Al-Hakba within his neighborhood. When his mother told him that a friend of hers had just started establishing Al-Hakba, Alaa immediately agreed and started paying until he reached the date of receiving the amount, estimated as $12,000. He decided to travel to Turkey. Unfortunately, the Yemeni war outbreak prevented him from traveling, causing him to start college in Yemen. Alaa was thinking about what could be done with this amount he received. So, he decided to get married, start founding his own project, and prepare for a new stage in life. Alaa says, “Today, I am very glad I was able to achieve a lot despite my young age; I became competitive with many working in prestigious companies. Currently, I have a small family, my wife and daughter, and my own project. I study at the university and work part-time at the institute." He adds admiringly, "I am grateful to the community in which I live, as it stands firmly beside each other." Alaa comments that he hopes the idea of Al-Hakba develops into an electronic application facilitating the process of subscription, payment, and delivery. Thereby, he is among the 34% supporting this idea.
