What does סבבה mean?
I hear it being used in random places, so I am not sure what it means even in the context. Is it a conjugation of the verb לסוב (to rotate), or is it related to the similarly-sounding Palestinian Arabic word صبابة which has the nuance "longing," or something completely different?

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The origin of the word is indeed from Arabic, but the meaning was changed.
It is a slang word for: OK, good, great, fine. And it is also used as an agreement word.

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It's like Cool/Ok

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