Trivia: There is a short scene after the credits.
Trivia: The only "Aladdin" film out of the original trilogy to not feature Robin Williams as the voice of the Genie. Williams had a falling out with the producers of the first film, and refused to return to voice the character. He did, however, act as an adviser for the role during pre-production and helped the producers find his replacement, Dan Castellaneta. Eventually, Williams and the producers settled their differences, and he returned to voice the Genie in the third film.
Trivia: "The Return of Jafar" is notable for being Disney's first direct-to-video animated sequel, and it served as the start a long line of such films in the '90s and 2000s. Though oddly, it wasn't originally meant to be a feature film. The movie instead began as an hour-long pilot for the "Aladdin" television series and was meant to air as a TV-special. But "Aladdin" series producer and co-director Tad Stones liked the story and characters so much, he pushed to expand the story and release it on VHS as a proper "sequel" to the first movie. It took some convincing, but eventually Disney executives fell in love with the idea and agreed.
Answer: The Genie says his powers were diminished after Aladdin freed him.
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Wouldn't the same thing happen to Jafar if Jafar was freed?
Yes. The same thing would happen to Jafar if Abis Mal did free him but, as seen, Abis Mal never wished for Jafar to be free. Jafar was still a genie because he still had the bands attached to his wrist.