Foreign Affairs Minister Murray McCully has welcomed Hosni Mubarak's decision to step down as president of Egypt.
Mubarak announced his resignation today after massive protests against his rule, following an uprising in Tunisia.
"The decision by President Mubarak to step aside will create the conditions for a peaceful and substantial transition.
"Hopefully this will enable a shift from protest and confrontation, to dialogue and co-operation. The stability of Egypt and the Middle East region depends upon this," Mr McCully said.
However, Mubarak's decision would also bring challenges.
"We hope that the military, to whom power is now entrusted, will act with restraint and show respect for the wishes of the Egyptian people.
"The changes that have occurred in the past day are truly significant, but many challenges now lie ahead if we are to see a peaceful transition in Egypt and stability within the region," he said.
- NZPA
McCully welcomes Mubarak's resignation
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