Displacement of aggression is a well known concept in psychology. Freud explored displacement extensively, and modern experimental researchers have demostrated the power of displaced aggression in laboratory conditions. But perhaps the best context for considering the true characteristics of diplacement of aggression is in foreign policy and international relations. The case of Saudi Arabia is interesting, because it also demonstrates the limits of how displacement of aggression can be used in foreign policy.
In 1980 I was participating in a United Nations project to help Afghan refugees in Baluchestan; following the Soviet invasion of Afghanistan, millions of Afghans had poured south into Iran and Pakistan. At the same time, in the same area there were large numbers of Islamic extremists moving up north to fight the Soviets. These extremists included Osama bin Laden and many other Saudis (as well as Afghans who would later form the Taliban government in Afghanistan).
The dictatorial regime of Saudi Arabia, supported by the US, directed disgruntled Saudis to go and fight the Soviets in Afghanistan. This served as a 'safety valve', easing the pressure inside Saudi Arabia. Eventually tens of thousands of extremists went from Saudi Arabia to fight in Afghanistan - the Saudi regime was using a classic displacement tactic.