Corporate governance carries strategic importance and should be addressed correctly by decision makers. Corporate finance literature suggests that diverse boards are a part of good corporate governance practice. However, it is not clear how good corporate governance- particularly diverse board characteristics might affect the corporate innovation and innovation search strategies. Utilizing the data from 25 banks listed in the UAE stock exchanges, this study evaluates the impact of boardroom diversity on firm innovativeness both before and after the drop in the oil prices. The results show that while gender and education do not significantly affect innovativeness of banks, having more experienced and independent board members enhances the innovation. The effect of experienced board members on innovation is more pronounced during the oil price drop period, while the effect of independent board members decrease after the drop in the oil prices.