Joshna, only Indian left in the fray after Dipika Pallikal fell earlier, lost 8-11 7-11 7-11 to the third seed.
The Indian, who beat the Egyptian in 2015 in the Qatar Classic, never got going as Raneem, a former world champion, showed a better mix of strokes to post a win in 27 minutes.
No Indian competed in the men's singles since Saurav Ghosal failed to qualify.
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