Could Oxfordshire's Reaction Engines be rescued by UAE?

The pioneering British aerospace company Reaction Engines, which has it headquartered at Culham Science Centre in Oxfordshire, is reportedly close to a deal with the United Arab Emirates's Strategic Development Fund which would see it become the company's biggest shareholder.

Known for its pioneering technology and unrivalled engineering achievements, Reaction Engines is enabling hypersonic flight, sustainable aviation, and cleaner energy through transformational cooling solutions developed, tested and proven by a team of skilled engineers and specialists.

Reaction Engines, which in August revealed that it had achieved a ground-breaking hypersonic propulsion system milestone, has been in talks with its existing backers for some weeks. These include the existing backer, the UAE's Strategic Development Fund, to raise between £15-£20 million to help it fulfil key contracts and begin to open up new revenue streams, according to the Financial Times.

Sky News is now reporting that Reaction Engines is now close to finalising a deal with the Strategic Development Fund.

Reaction Engines was founded in 1989 by three propulsion engineers from Rolls-Royce. Their early work on the RB545 engine, destined for use on HOTOL, was evolved and focused on producing a robust technical design for the new SABRE – Synergetic Air Breathing Rocket Engine.

By 2012, the company had manufactured a fully operational precooler with the associated frost control systems. Following a test programme which included over 700 rig tests, the precooler had been verified beyond doubt.

Following this technology verification the UK Government committed £60 million via the UK Space Agency and European Space Agency.

In 2015, a partnership and investment of £20.6 million with BAE Systems was announced. This represented an important landmark in the transition of Reaction Engines from a company that had been focused on the research and testing of enabling technologies for SABRE, to one focused on development and building capability to become a serious player in the aerospace sector. 

In 2018, the company announced it has raised a further £26.5 million from some of the most influential names in aerospace and finance, including Boeing and Rolls-Royce.

In 2023 Reaction Engines announced a £40 million funding round which included new investment from the UAE’s Strategic Development Fund, as well as further investments from existing industry and financial investors.

Last week the Royal Academy of Engineering elected Reaction Engines' CEO, Mark Thomas to its Fellowship, one of 71 leading figures in the field of engineering and technology.

Mark has been Chief Executive Officer of Reaction Engines since 2015.