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established him as
"made him"
his kingdom was exalted on high
The idiom "exalted on high" means that Yahweh had given great honor to David's kingdom. This can be stated in active form. AT: "Yahweh had exalted David's kingdom on high" or "Yahweh had given great honor to David's kingdom" (See: rc://en/ta/man/translate/figs-idiom and rc://en/ta/man/translate/figs-activepassive)
for the sake of his people Israel
Here the word "his" refers to Yahweh.