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Yusuf gradually resumed his musical career in the 1990s. His initial recordings had not included any musical instruments other than percussion, and featured lyrics about Islamic themes, some in spoken word or hamd form. He invested in building his own recording studio which he named Mountain of Light Studios in the late 1990s, and he was featured as a guest singer on "God Is the Light", a song on an album of nasheeds by the group Raihan. In addition, he invited and collaborated with other Muslim singers, including Canadian artist Dawud Wharnsby. After Yusuf's friend, Irfan Ljubijankić, the Foreign Minister of Bosnia and Herzegovina, was killed by a Serbian rocket attack, Yusuf appeared at a 1997 benefit concert in Sarajevo and recorded a benefit album named after a song written by Ljubijankić, I Have No Cannons That Roar.[88]
Realising there were few educational resources designed to teach children about the Islamic religion, Yusuf wrote and produced a children's album, A Is for Allah, in 2000[89] with the assistance of South African singer-songwriter Zain Bhikha. The title song was one Yusuf had written years before to introduce his first child to both the religion and the Arabic alphabet. He also established his own record label, "Jamal Records", and Mountain of Light Productions, and he donates a percentage of his projects' proceeds to his Small Kindness charity, whose name is taken from the Qur'an.[90]
On the occasion of the 2000 re-release of his Cat Stevens albums, he explained that he had stopped performing in English due to his misunderstanding of the Islamic faith. "This issue of music in Islam is not as cut-and-dried as I was led to believe ... I relied on heresy [sic],[91] that was perhaps my mistake."[89]
Yusuf has reflected that his decision to leave the Western pop music business was perhaps too quick with too little communication for his fans. For most, it was a surprise, and even his guitarist, Alun Davies said in later interviews that he hadn't believed that Stevens would actually go through with it, after his many forays into other religions throughout their relationship.[37] Yusuf himself has said the "cut" between his former life and his life as a Muslim might have been too quick, too severe, and that more people might have been better informed about Islam, and given an opportunity to better understand it, and himself, if he had simply removed those items that were considered harām, in his performances, allowing him to express himself musically and educate listeners through his music without violating any religious constraints.[92]
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